Office Space in Yangon More Expensive Than NYC
Office space in Yangon is more expensive than the equivalent per square foot in New York City, reports state.
The acquisition of prime space in the former capital of Burma (Myanmar) is a prominent issue for the large number of multinationals seeking to expand, following the country's political opening and easing international sanctions.
Rent is the city's three sole 1990s-era towers has risen to a staggering $100 per square foot - compared with less than $75 in downtown Manhattan, according to the CRBE group.
This reported rise in commercial property value comes in amid reports that the city's office spaces are drastically sub-standard when it comes to facilities. A lack of safety exits, low levels of cleanliness, required space sharing, and 'odd locations' have been reported as major problems for high-end multinationals seeking space.
Developers are keen to solve potential issues as swiftly as possible, for the sake of multinationals setting up operation in Burma. Yangon, the country's commercial capital, needs a bare minimum of 8.7 million square feet of dedicated office space to meet current levels of demand, according to Yoma Strategic Holdings Ltd. However, as little as 1.9 million square feet will be available by the end of 2015.
"With rentals going up, and the shortage going to become more acute in at least the next seven years, it's an attractive market for foreign developers," said Cyrus Pun, executive director of Yoma. "There's still a big gap to be filled. Whatever is being built right now will not satisfy the immediate demand."