Investment Returns in Office Space

January 27, 2022

For many investors, the quality and value of the asset itself are as important as the rental revenue it will return.

Note: Chart assumes average annual appreciation rate for landed properties at 3%, Residential condos at 5.5% and Office space at 6%, based on analysis of Pointer Real Estate, 2014 – 2019. Projections based on historical data and are not a guarantee of investment return.

For many investors, the quality and value of the asset itself are as important as the rental revenue it will return. Whether planning to flip a property or rent for regular income, you want the base value of the asset to increase. Grade A Office Condos (strata-titled office space) in prime areas offer the strongest appreciation return.

If you’re currently looking at investing, what would a $500K investment look like in the three main, non-land categories? Based on the trends from 2014 to 2019, office space appreciates at the highest rate, even more than its residential counterpart. To be conservative, the chart above does not add any acceleration to the growth rate and only uses historical trends. And even with a modest 6% growth rate for Office space assets, Office Condos outperform other building types. If you invest $500,000 today, you can expect that property to be valued at over $630K in five years or almost $850K in 10 years. This does not include rental income, which greatly increases the overall value (not to mention, office tenants tend to sign on for longer lease periods than residential tenants).

We say a diversified portfolio is key to a sound investment strategy. Residential real estate, land, business investment, stocks, and fixed deposit accounts are essential, but commercial real estate should also have a place in every well-rounded portfolio. With Cambodian GDP growth rates expected to recover to their highs in the next few years, Odom is the perfect investment– Grade A, the perfect location and design that will make it the most sought-after office space in Phnom Penh for decades to come.

What are you waiting for? Schedule a meeting with one of our Sales Advisors today! Don’t forget about the Chinese New Year promotion available until 13 February.