Establish Your Office in the Heart of Phnom Penh City Center

Setting up your office in the heart of Phnom Penh City Center (PPCC) has become an increasingly attractive option due to current trends in the city's real estate market. Phnom Penh, the capital of Cambodia, has experienced significant growth in its real estate sector, marked by an increasing demand for different types of commercial property.

One of the significant advantages of renting an office in Phnom Penh is the city's robust economic growth. Cambodia's GDP has been steadily increasing, driven by sectors like manufacturing, construction, and tourism. This economic stability creates a favorable environment for businesses looking to establish a regional presence.

Speaking of tourism, Cambodia's popularity as a tourist destination has been growing, further fueling the demand for office spaces. Many businesses in the hospitality, travel, and service sectors are setting up offices to cater to the needs of the thriving tourism industry. Explore our guide to understand the impact of real estate tourism in Cambodia.

Demographically, a diverse group is looking for office space for rent in Phnom Penh. Expatriates seeking business opportunities in Cambodia establish offices alongside local entrepreneurs and businesses. This blend of local and international professionals contributes to a vibrant and cosmopolitan business environment.

COVID-19 did impact the real estate market, causing a temporary slowdown. However, Phnom Penh has shown resilience in its recovery trends. As travel guide ease and vaccination rates increase, the demand for office space for rent is on the rise again.

The importance of office spaces in Phnom Penh's current real estate market cannot be overstated. They serve as business hubs, providing a professional environment for operations, meetings, and collaborations. With the city's economic growth, diverse demographic of renters, and post-pandemic recovery, setting up an office in PPCC offers an excellent opportunity for businesses to thrive in Cambodia's dynamic market.

What are the top 3 reasons to rent an office in Phnom Penh?

Investment Potential 

• Phnom Penh offers significant investment potential in the office real estate sector.
• The city's growing economy and business-friendly environment make it an attractive destination for investors.
• Rental yields and property valuation have been steadily increasing, providing favorable returns on investment.
• For those who are confused about whether investing in land for commercial purposes will be fruitful or not, check out the reasons for buying land in Cambodia for clarity. 

Analysis of Warehouse Value Trends in Phnom Penh

• The warehouse real estate market in Phnom Penh has been experiencing upward value trends.
• Demand for storage and distribution spaces has surged with the growth of e-commerce and logistics sectors, a new logistic and multi-purpose Kampot port to boost the economy through trading.
• Investors can capitalize on this trend by renting office spaces strategically located near warehouses for business synergy.
• Follow our experts' tips to find warehouse Phnom Penh. 

Long-term Investment Outlook 

• Government initiatives and new construction projects in Phnom Penh point to a promising opportunities for investing in commercial real estate outlook.
• The Cambodian government actively promotes foreign investment and improves infrastructure, enhancing the city's appeal for businesses.
• Investors can expect sustainable growth and appreciation of office property values in the coming years.

Comparative Analysis with Other Regions in Cambodia

• A comparative analysis with other regions in Cambodia is essential when considering office rental.
• Phnom Penh often stands out due to its economic vitality, connectivity, and access to a skilled workforce.
• Investors should assess the advantages of Phnom Penh over other regions to make informed decisions about renting office spaces.

Advantages of Choosing an Office for Rent in Phnom Penh

Renting an office in Phnom Penh offers a lucrative combination of high returns, strong demand, a favorable business environment, and significant long-term growth potential.

High Rental Yields 

• Enjoy the potential for impressive annual returns, ranging from 8% to 10%, which are among the most competitive in Southeast Asia.

Strong Demand 

• Experience robust demand driven by Phnom Penh's rapid economic expansion, a thriving tourism sector, and a dynamic startup ecosystem.

Limited Supply 

• Benefit from the scarcity of top-tier office spaces, particularly Grade A buildings, which leads to increased rental rates and enhanced benefits for investment company in Cambodia.

Strategic Location 

• Phnom Penh's strategic positioning as a regional logistics and warehousing hub attracts major international corporations seeking prime business locations.

Positive Long-Term Outlook 

• The government's steadfast commitment to infrastructure development and economic diversification creates a conducive environment for sustained business growth.

Improved Infrastructure 

• Ongoing infrastructure projects enhance connectivity and logistics efficiency, reducing operational costs and bolstering trade opportunities.

Competitive Advantage 

• Phnom Penh offers a distinct cost advantage for conducting business compared to other regional capital cities, delivering substantial cost savings.

Growing Economic Potential 

• With its strategic location, expanding population, and economic diversification, Phnom Penh promises to be a promising long-term investment destination for businesses and investors.

Accessibility

• Opting for an office for rent in Phnom Penh ensures exceptional transport accessibility, with strategic locations providing easy connections to major roads, public transit options like buses and tuk-tuks, facilitating smooth commuting for employees.
• Additionally, proximity to key transportation routes simplifies the movement of goods and services, contributing to seamless business operations within the city.

What is the standard of living in Phnom Penh?

The standard or cost of living in Phnom Penh, Cambodia, is affordable and comfortable. The city offers a lower living cost than many other Southeast Asian capitals. With a range of dining options from street food to upscale restaurants, affordable transportation, and reasonably priced goods and services, expatriates and locals can enjoy a good quality of life. Supermarkets are well-stocked with domestic and foreign products, and the city offers a diverse cultural experience, making it an attractive destination for those seeking a balance between affordability and a vibrant lifestyle.

For further insights, explore the comprehensive guide on living in Siem Reap vs Phnom Penh.

Office’s Characteristics and Average Rent Offered by IPS Cambodia

When seeking an office for rent in Phnom Penh, multiple factors come into play. Identifying the area that aligns with your business ethos, lifestyle, market accessibility, and secure infrastructure. We guide you through these considerations to secure the best office space for your needs.

Office Spaces Tailored to Your Preferences

IPS Cambodia offers a wide array of office spaces designed to cater to various business requirements:

Traditional Offices 

• Standalone, fully-equipped spaces ideal for long-term commitments and requiring a substantial upfront investment.
• Prices for these offices vary from $5- $50 per square meter, per month.

Co-working Spaces 

• Providing flexibility with shared workstations and access to facilities, perfect for short-term rentals and cost-effectiveness.
• Prices for co-working spaces vary from $150 to $350 per month.

Serviced Offices 

• Similar to traditional spaces but with added perks like receptionists, secretarial support, and IT infrastructure, suitable for maintaining a professional image, available on short-term lease.
• Prices vary from $250 to $300 per month.

Grades of Office Spaces

Our offices come in various grades based on quality, amenities, and location:

Grade A Offices 

• Located in prime areas like Daun Penh, housing prestigious buildings such as Vattanac Tower and Exchange Square, offering high-quality facilities.
• The rental rates for Grade A office space in Phnom Penh range between USD $28 - USD $40 per square meter.

Grade B Offices 

• Buildings like Canadia Tower offer slightly less premium amenities than Grade A spaces but are still top-notch.
• The rental rates for Grade B office spaces typically range between USD $18 - USD $29 per square meter.
• However, outside the Central Business District (CBD), the rates can be lower, around USD $15 per square meter.

Grade C Offices

• Basic, affordable spaces meeting essential business needs.
• The rental rates for Grade C office spaces in Phnom Penh range from USD $9 - USD $18 per square meter.
• Outside the CBD, these rates can drop to around USD $13 per square meter.

It's important to note that these prices may be subject to additional charges like service fees, which can range from USD $2 - $5 per square meter, and taxes like withholding tax and VAT, depending on the terms set by the landlord. Also, parking space allocation is usually one space for every 100 square meters of net lettable space, so it’s advisable to check the parking allocation for each office building you consider.

Notable Office Developments

Explore renowned buildings like Canadia Tower, Exchange Square, and Green Penthouse:

Canadia Tower 

• Situated in the central business district, providing Grade B office space with modern amenities.
• The asking rent for office space in Canadia Tower ranges from US $25 to $30 per square meter.
• Additionally, there's a service charge of US $5 per square meter.

Exchange Square 

• Located in Daun Penh, offering Grade A office space with state-of-the-art design and technology, and rent varying from US $25 to US $30 per square meter, with an additional service charge of US $5 per square meter.

Green Penthouse 

• Presents unique and eco-friendly office spaces with innovative features, rent for offices in Exchange square varies rom $31 per square meter per month, with additional $5 per square meter service charge.
• For additional information, read our article discussing the average cost of a penthouse.

Office Villas for a Personal Touch

• For those seeking a more spacious and private setting, consider office villa for rent in areas like BKK1, Toul Kork, or Chroy Changvar.
• These converted detached or semi-detached houses offer flexibility and customization options, and average rent for these vary from US $28 to US $40, depending on the place and areas.

At IPS Cambodia, our goal is to assist you in finding the perfect office space in Phnom Penh, addressing your unique business requirements and lifestyle preferences.

Popular Areas to Rent an office in Phnom Penh

Phnom Penh offers a variety of areas where you can rent an office, each with its own unique appeal and advantages. Here are some popular areas to consider:

Boeung Keng Kang (BKK)

• Renowned for its upscale and prestigious status, Boeung Keng Kang (BKK) is a district coveted by businesses looking for sophistication.
• BKK1 is a vibrant area with a mix of commercial and residential spaces. It’s known for its upscale restaurants, bustling cafes, and strategic proximity to various embassies.
• This locale boasts a prestigious aura, making it an attractive business hub, especially for companies seeking a refined and distinguished atmosphere.
• Grade A offices in BKK1 could range from $28 to $40 per square meter.

Tonle Bassac

• Nestled close to the banks of the Tonle Sap River, Tonle Bassac is a burgeoning area attracting businesses seeking a blend of modernity and tradition.
• This emerging district offers a diverse array of office spaces and commercial options.
• Its proximity to the river provides a serene ambience while embracing a modern Cambodian cultural fusion, making it an intriguing choice for businesses seeking a unique environment that reflects contemporary and traditional elements.
• Grade B offices fall from $18 to $29 per square meter.

Daun Penh

• As the central district, Daun Penh epitomizes Cambodia's tradition and modernity.
• Known for housing prestigious Grade A office buildings like Vattanac Tower and Exchange Square, this area is a coveted choice for businesses aiming for a central and esteemed location.
• Its proximity to government offices, major cultural landmarks, and the riverside of the Tonle Bassac river amplifies its appeal, making it an ideal location for businesses that value proximity to key establishments and a rich cultural backdrop.
• Premium Grade A offices like those in Vattanac Tower and Exchange Square could command a higher range, possibly between $38 to $40 per square meter.

Khan 7 Makara

• Positioned southwest of the city center, Khan 7 Makara offers accessibility and cost-effectiveness, making it an appealing choice for businesses mindful of budget constraints.
• This locale is known for its affordability and practicality.
• It's a practical choice for businesses looking for a central location without the premium associated with more upscale districts, catering well to those seeking affordability without compromising accessibility.
• Offices in this area might be more affordable, potentially ranging from $10 to $20 per square meter, likely for lower-grade spaces.

Toul Kork

• Toul Kork, an evolving district, has witnessed a surge in available office spaces, attracting businesses in various sectors.
• This area represents a blend of modernity and traditional Cambodian culture. With its growing number of office spaces, it caters to businesses looking to capitalize on the area's development.
• It’s an area to watch for those desiring a location with growing commercial potential and a mix of contemporary and cultural influences.
• Prices could vary based on location and grade, with estimates falling between $15 to $30 per square meter.

Chamkar Mon 

• Renowned for upscale neighborhoods, Chamkar Mon is an ideal location for businesses dealing in luxury goods, high-end services, and creative industries like design and advertising.
• It's also a favorable spot for NGOs and international organizations.
• The area, covering BKK 2 and BKK 3, offers a high standard of living, featuring access to international schools, upscale shopping facilities, and diverse dining options, making it an appealing choice for corporate environments seeking a cosmopolitan and sophisticated setting.
• Similar to BKK1, offices here might range from $28 to $40 per square meter.

Toul Tum Poung (Russian Market) 

• Known as the Russian Market, Toul Tum Poung attracts small businesses, startups, artisan shops, and expats, making it an excellent locale for businesses targeting an international clientele.
• The district fosters a diverse, multicultural atmosphere, featuring a variety of international restaurants and cafes, creating an environment that appeals to corporate setups seeking a vibrant and community-oriented lifestyle.
• More budget-friendly options may be available, ranging from $10 to $20 per square meter.

Boeung Trabek 

• Suited for small to medium-sized businesses, Boeung Trabek caters particularly well to sectors like retail, local services, and food and beverage due to its growing residential population.
• For corporate settings, it offers a balanced local living experience with convenient access to daily amenities.
• Similar to Toul Tum Poung, offices here might range from $10 to $20 per square meter.

Olympic 

• Recognised for the Olympic Stadium, this area suits sports and fitness-related businesses, retail outlets, and entertainment ventures due to its central location.
• It presents a fusion of local culture with modern amenities, providing an ideal environment for businesses seeking an active urban lifestyle.

Meanchey 

• Ideal for industrial businesses, warehouses, and logistics companies due to its spacious layouts and less central location.
• It offers a suburban living experience for corporate families away from the city centre's hustle and bustle.

Russey Keo 

• Geared towards manufacturing and industrial businesses, Russey Keo's location away from the city center offers larger spaces at more affordable rates.
• It provides a tranquil suburban lifestyle, appealing to families desiring a quieter environment.

Sen Sok 

• Emerging as a new commercial hub, Sen Sok caters to various businesses, from retail to tech startups, owing to its modern infrastructure.
• It's increasingly attractive for corporate families, offering a modern suburban environment with new housing developments and amenities.

Por Senchey 

• Home to Phnom Penh International Airport, Por Senchey suits logistics, travel, hospitality, manufacturing, and export-oriented business businesses.
• It offers a mixed community with local and expatriate residents, making it suitable for families seeking diversity and easy access to the airport and city outskirts.

Chbar Ampov 

• With recent developments, Chbar Ampov has become a hotspot for new businesses, especially in real estate, retail, and local services.
• It offers a quieter living environment with scenic views of the Mekong River, attracting families seeking a blend of city access and natural surroundings.
• Less central or industrial areas like Meanchey and Russey Keo might have even lower prices, ranging from $5 to $15 per square meter or potentially lower for specific industrial spaces.

Tips for Selecting the Right Location in Phnom Penh

Consider Your Target Audience

• Think about your clients and employees.
• Choose a convenient location for them, whether near major business districts, residential areas, or the hub of transportation.

Budget

• Different areas in Phnom Penh come with varying rental price.
• Determine your budget and look for options that fit within it.

Amenities

• Consider the amenities and services available in the area, such as restaurants, banks, and transportation options.
• These can greatly impact the convenience of your office.

Future Growth 

• Think about the long-term prospects of the area. Is it likely to develop further and attract more businesses and talent?

Security

• Ensure your chosen area is safe and secure for your employees and clients.

How Can IPS Cambodia Help Rent an Office in Phnom Penh?

IPS Cambodia offers comprehensive assistance in renting an office in Phnom Penh, catering to the diverse needs of businesses and individuals. Here's how IPS Cambodia can help:

Extensive Property Listings

• IPS Cambodia maintains an extensive database of office spaces available for rent in Phnom Penh.
• Whether you're looking for traditional offices, co-working spaces, or serviced offices, their listings cover many options.

Local Market Expertise

• With over a decade of experience in Cambodia's real estate market, IPS Cambodia's team possesses in-depth knowledge of the local market trends, pricing, and emerging areas.
• They can provide valuable insights to help you make informed decisions.

Personalized Guidance

• IPS Cambodia's experienced agents work closely with clients to understand their requirements and preferences.
• They offer personalized guidance and property recommendations tailored to your needs.

Property Tours

• If you're in Phnom Penh, IPS Cambodia can arrange property tours, allowing you to inspect potential office spaces physically and get a feel for the location and amenities.

Negotiation Support

• Once you've identified a suitable office space, IPS Cambodia assists in negotiating favorable lease terms, ensuring you get the best deal possible.

Legal and Documentation Assistance

• Navigating the legal aspects of leasing an office can be complex.
• IPS Cambodia supports handling documentation, lease agreements, and legal requirements, ensuring a smooth process.
• Please ensure you do check out our article on factors before signing a lease in Cambodian property.

Post-Lease Support

• IPS Cambodia's services don't end with signing the lease.
• They offer post-lease support, addressing any concerns or issues that may arise during your tenancy.

Variety of Office Types

• Whether you need a traditional office, co-working space, or serviced office, IPS Cambodia has a diverse selection of office types to choose from, catering to different business needs and budgets.

Local Insights

• For expatriates or businesses new to Phnom Penh, IPS Cambodia can offer valuable insights into the local business environment, including cultural norms and practical tips for operating in the city.

Step-by-Step Guide on Renting an Office in Phnom Penh

Step 1: Determine Your Needs

• Identify your office space requirements, including size, location, and budget.

Step 2: Market Research

• Research available office spaces in Phnom Penh, considering factors like location, amenities, and lease terms.

Step 3: Contact IPS-Cambodia

• Contact IPS-Cambodia, a trusted real estate agency, to assist you in finding suitable office spaces.

Step 4: Property Viewing

• Schedule property viewings with IPS-Cambodia to inspect the shortlisted office spaces and assess their suitability.

Step 5: Lease Negotiation

• Work with IPS-Cambodia to negotiate lease terms, including rental rates, lease duration, and any specific requirements.

Step 6: Documentation and Legal Considerations

• Gather the required documents for renting.

• Ensure you know the legal considerations for expats and locals, including updates on foreign property ownership in Cambodia.

Step 7: Payment Processes

• Understand the payment terms and conditions outlined in the lease agreement.

• Verify the accepted payment methods and explore every real estate finance options or mortgage information if necessary.

Step 8: Moving and Settling In

Moving Services

• Receive recommendations for trusted moving companies.

• Follow a checklist before moving in for a smooth moving process.

Setting Up Your New Office

• Receive a utility setup guide for essential services.

• Get tips on decorating and optimizing your office space for a comfortable work environment.

Community Integration

• Get introduced to local communities and groups that may facilitate networking.

• Learn how to navigate through cultural and social norms in Phnom Penh.

Step 9: Property Management Services Post Renting

• Understand how to contact the property management team for any assistance or inquiries.

Step 10: Maintenance and Repair

• Learn the process for reporting maintenance and renovation repair issues.

• Be aware of the expected timelines for fixes and resolutions, ensuring a well-maintained office space.

IPS-Cambodia is committed to simplifying your office rental journey in Phnom Penh. Our expertise, resources, and dedication make us your trusted partner in finding the perfect workspace to suit your needs.

We invite you to take the next step and explore the listed offices that align with your requirements. Our user-friendly inquiry forms are designed for convenience, ensuring a seamless experience. Rest assured, your inquiries will receive prompt attention, and our team is ready to assist you with any questions or assistance you may need.

Empower your business with the right office space. Begin your journey with IPS-Cambodia today.

Top Office Spaces for Rent in Phnom Penh

Check out the available list of Office Spaces

Frequently Asked Questions