​The number of companies opting for flexible workspaces has been gradually growing annually around the globe. However, unlike other cities in the region that has a fully-matured flexible working landscape; Yangon houses an embryonic niche offering.

According to a recent office report by Colliers International Myanmar, the aggregate stock totaled to more than a thousand workstations (e.g. meeting rooms, flexible desks, etc.), representing some 18 business centers - catering to both local and foreign business entities initially establishing a presence in the city. “This concept, by its nascent nature, is determined to remain a niche activity in the city,” said Mr. Paul Ryan Cuevas, Senior Research Analyst for Colliers International Myanmar. He mentioned that the dominance of traditional office space will remain pronounced and will not be challenged. “Though, key players should not neglect this product as its budding status points to ways of thinking and doing business that will impact their operations in the long run,” he explained.

As of Q2 2019, no new office development was witnessed in Yangon over the past six months. Despite the modest qoq decline, the citywide occupancy remained above the 70% mark. Likewise, the citywide average rental rate further corrected downwards at USD39.5 per sq meter per month. Colliers expects both occupancy and absorption levels to further improve once the government allows more foreign businesses to operate in the country. “Given the recent developments regarding the easing of sanctions for foreign banks and foreign insurance providers, demand for quality office spaces is predicted to rise,” said Ms. Hninn Ei Kyaw, Senior Leasing Manager of Colliers International Myanmar. “We also expect the market to experience a more competitive rental environment in the next three years. This should create an impetus for potentially large-sized businesses to scale up operations, as well as small and medium sized tenants to relocate in formal office buildings,” she added.

Download Yangon Office Market Report Q2 2019 report.

Source: Colliers International Myanmar

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