Real estate services provider Colliers International (Thailand) has warned that Bangkok’s commercial property market is already on a downwards slope with multinational firms beginning to slash spending as their head offices suffer the impact of the global economic crisis.

Colliers International (Thailand) managing director Patima Jeerapaet said demand for office and retail space had fell significantly in the last quarter of 2008 quarter because US and European multinationals were beginning to suspend business expansion around the world, including that in Thailand.

"Our customers are trying to reduce their office space to save money, and some are moving from grade A locations to grade B," she said.

The occupancy rate of serviced apartments also contracted in the last quarter of 2008, with foreign firms cutting staff or reducing allowances for their accommodation.

The outlook for 2009 in Thailand´s industrial estates is similarly bleak, according to Patima. Multinational companies, especially those in the auto industry, are expected to reduce investment earmarked for expansion plans, and this will drag down demand for industrial space.

"In our business view, Thailand´s commercial property sectors, including industrial estates, office space and serviced apartments, will suffer a direct negative impact from the global economic crisis," she said.

source : www.property-report.com