Renting Commercial Property in Bangkok
Find the perfect Commercial Space for rent in Bangkok.
Amazing Properties is a commercial real estate agency in Bangkok since 2009. Our expertise lies in the Sukhumvit (Chidlom-Ekkamai) and Silom-Sathorn areas and we have an extensive portfolio of Commercial properties for rent in Bangkok.
Whether you are looking for a Commercial space in Thonglor, Retail space for rent in Sukhumvit or a commercial space for rent in Sathorn, Amazing Properties is your commercial real estate agent in Bangkok, and we are here to guide you in your search.
Commercial space for rent in Bangkok listings (here)
When it comes to choosing a commercial space or retailspace in Bangkok, you will have different options to consider. Some factors to keep in mind include location, price, size, and the amenities available in the building itself.
Our team will work diligently with you to find the perfect commercial space in Bangkok that meets all your needs and requirements. With our experienced and knowledgeable staff at the helm, you can rest assured knowing that every detail will be carefully taken care of.
In Bangkok, the competition for commercial spaces is high – especially with the influx of cannabis shops that are snatching up many prime locations.
For those who would like to open a business in Bangkok, finding an ideal spot can be daunting and overwhelming. Luckily, there are still plenty of options available if you know where to look!
Learn more about the process and get answers to frequently asked questions by reading this article!
Before beginning your search, ensure that you have conducted thorough market research and ask yourself the following questions:
1) What kind of business are you planning to open?
2) Who are your competitors?
3) Who are your customers?
4) In which area of Bangkok would you like to be?
5) How many sqm of commercial space do you need?
6) What is your rental budget per month?
7) What is the time frame you are planning to open?
8) Do you already have a business plan? Etc
As you can see there are many questions to be answered before starting your search. Once you have arrived in Thailand and planning to work in your new business venture you would need to apply for a Non-B (Business) Visa, set up a Thai Company, get a work permit, and setup a Company Bank account.
Set up a Thai Company
When starting a business in Thailand, it’s essential to determine the kind of company you want to create. Unless your company is part of an extensive Board of Investment (BOI) program, nationals should own the majority stake; thus, as a foreigner, your maximum ownership limit would be 49%. Being aware and prepared for this before beginning any venture could save you time and effort later.
When it comes to setting up a company in Thailand, there are three primary types of companies you can choose from. Let’s look at them:
– Registered Ordinary or Limited Partnership
– Representative Office, Regional Office or a Branch Office
– Limited Company
To gain a better understanding which company type to open in Thailand, we highly recommend hiring the services of an experienced Thai lawyer. Gaining proper legal advice is essential for any business endeavor within this country.
Understanding Nominee’s Shareholder and Majority Shareholder Issues
As previously mentioned, when forming a company in Thailand, it is essential to understand the concept of “Nominee Shareholder”.
In Thai business culture, this individual does not have any rights or control over financial and operational matters, but merely serves as an official “name” for the shareholder.
All in all, if you are a foreigner seeking to establish your own business, the percentage of ownership that you can possess is limited. Moreover, according to Foreign Business ACT 1999 it would be illegal and punishable by imprisonment for anyone to act as a nominee shareholder. Furthermore, do not make the mistake of hastily deciding on registering your company under your newly acquainted Thai partner’s name; this could wind up being an imprudent decision with potentially major repercussions.
To ensure the security of your company setup, a Thai business lawyer is essential to give you appropriate counsel. You should form a Thai majority company with yourself owning 49% stake while the remaining 51% will be owned by Thai shareholders who have no power over your operations. With this structure in place, you can rest assured that whatever decisions are made for your venture will be made responsibly and with utmost care.
What is the process of renting commercial property in Bangkok?
Step 1) Let us know your specific business needs (business type, size, location, rental budget, special requests etc). You can send us an email with all the information or simply give us a call to discuss.
Step 2) We will provide you with a selection of options tailored to your needs.
Step 3) If you’re interested in seeing any of the choices, we’ll arrange an appointment to view them.
Step 4) If you like the space after viewing it, we typically craft a Letter of Intent that outlines all required conditions and kick off the negotiations.
Step 5) Once all conditions are met, we sign the offer letter with a typically 1-month booking fee and the Lessor/ Owner will draft the Contract.
Step 6) Contract signing along with remaining deposit payment.
Step 7) Handover of the space. Prior to beginning any renovations, it is customary for the landlord to review and approve your renovation plans before officially transferring the space.
Retail Lease Terms in Shopping Centers Bangkok
When renting a commercial space in a Shopping center in Bangkok, the Lease terms and conditions are different than when renting a commercial space directly from an individual landlord.
There are two types of leases for retail spaces in Thailand:
• A rental lease with a term of normally three years.
• A long lease (“Saeng”), with a term of 15-30 years.
Retail Rental Rates and Costs in Shopping Centers
1. Retail Rents in Thailand
When it comes to retail rents in Thailand, they are typically given on a price per square meter basis and billed one month ahead of time. Rents may be quoted as gross (including service charge), but bigger landlords will usually charge rental fees separately from the service charges. In many shopping malls, they charge a rental fee with a % of Gross profit, whichever is higher.
2. Security Deposit
A security deposit of six months’ gross rent is typically required upon signing the lease agreement. Upon expiration of the contract, this amount is returned to you – excluding any interest earned during your tenancy period.
3. Service Charges, Utilities and Insurance
Typically, when leasing a shop space, retailers are responsible for utility bills, communications expenses and third-party insurance. The service charge is usually incorporated with the rent amount; nonetheless, in larger retail centers this fee is charged separately.
4. Operating Expenses
• Insurance premiums
• Electricity
• Telephone
• Water
• Gas
• Household Tax/ Property Tax
5. Fitting Out/ Renovation Period
Depending on the size of your retail space, you typically get a rent-free period of one month (30 days) to fit out your space.
6. Rent increase after 3 years
When it comes to the monthly rental payment, landlords and tenants should mutually decide on an escalation rate/ % increase that will be applied every three years. This kind of agreement is necessary before signing any contract.
7. Subletting or Assignment Rights
When signing a retail tenancy agreement, tenants are typically not allowed to sublet or assign the lease without getting approval from their landlord first.
8. Lease Termination
Tenancy agreements are often written to provide neither retailers nor landlords with the option of termination during the duration of their lease.
Popular Shopping malls in Bangkok
o EmQuartier
o Emsphere
o Siam Paragon
o Central World
o Central Embassy
o Terminal 21 shopping mall
o Iconsiam
o One Bangkok
o Gaysorn Village
o Velaa Sindhorn Village
*Please note that many shoppingmalls dont accept agencies anymore.
FAQ When Renting Commercial Space in Bangkok
1. How much is the Booking Fee usually?
Answer: The Booking Fee is usually equal to 1 month’s rent
2. What is the minimum lease term for commercial spaces in Thailand?
Answer: The minimum Lease term is 3 years.
3. How many months’ security deposit is required when renting a commercial space?
Answer: It depends if you rent a commercial space in a shopping mall or from an individual owner, but normally the security deposit is 3-6 months’ rent.
4. Is the Security Deposit refundable?
Answer: Yes, normally upon expiration of the lease term, the security deposit will be refunded to you (Excluding interest) within 30-60 days.
5. How many months are typically given for the Fit-Out / Renovation period?
Answer: The Fit-out / Renovation period is usually 1 month, depending on the size of the leased area. A longer renovation period is normally discussable.
6. Are Utilities Included in the Rental Price?
Answer: No, utilities are extra costs.
7. Do I need insurance when renting commercial space?
Answer: Yes, most landlords require the Tenant to have insurance for their own goods and property against public liability, flood, fire, and property damage in the space.
8. What is the required notice period before I move out of the space?
Answer: Normally you give a written notice of 90 Days to the Lessor before moving out and restore the space back to its original condition.
9. Who usually pays the Property Tax?
Answer: Usually the Property Tax is paid by the Lessee, however in some cases the Lessor also pays (Case by Case)
10. When is the Rent Due and how do I pay it?
Answer: The rent is normally due on the date as agreed in the lease agreement and payable by Bank transfer, however, some landlords require payment by Cashier Cheques.
11. How many % is usually the Rental increase after 3 years?
Answer: Normally the rent after 3 years is increased by 10-15%
12. How much is the stamp duty?
Answer: Stamp duty is 0.1% of the contract value, excluding the fit-out period.
13. Who normally pays stamp duty?
Answer: The stamp duty tax is normally paid by Lessee, but in some cases, the Lessor also pays (Case by Case)
14. How much is the Lease registration fee in Thailand?
Answer: The Lease registration fee in Thailand is 1.1% of the total rental part throughout the entire lease term. At the time of registration, a lease registration fee is collected by the land office, which is 1% of the total rental throughout your entire leasing term. Additionally, you will be charged a 0.1% stamp duty on all rent paid during this period as well.
15. What’s the penalty for breaking my lease?
Answer: When you terminate your lease before it expires, you normally will forfeit your security deposit in full and must return the space in its original condition. To make matters worse, there may even be a clause stating that you still owe rent for the remainder of your contract term, so please check carefully.
16. Is it possible to sublease a rental space in Bangkok?
Answer: Tenants are normally not allowed to sublet or assign the lease without approval from the landlord.
17. What happens if I don’t pay the rent on time?
Answer: In Thailand, failure to pay rent on time is considered a violation of the rental agreement. In most cases, landlords will send a reminder or warning letter to the tenant before taking any further action.
However, if payment is not made within a reasonable period, landlords may terminate the lease and initiate eviction proceedings. Tenants may also be responsible for paying any outstanding rent and any legal fees incurred by the landlord during the process. It is important to check all agreed terms in your rental agreement, communicate with your landlord and try to resolve any issues as soon as possible to avoid potential legal action.
Common Tenant Pitfalls in a Commercial Lease Bangkok
When signing a commercial lease in Bangkok, there are some common pitfalls that tenants should look out for. Being aware of these potential issues can help avoid costly mistakes and ensure the best outcome for any tenant.
1) Ensure the Lease agreement matches the Letter of Intent (LOI)
It’s all too common for me to witness agreements that are inconsistent with the terms originally agreed upon in a Letter of Intent (LOI). Crucial details such as reduced rental fee for the first few months, percentage rental increase, floor area, fit-out period, lease term and renewal periods, security deposit amount, parking and signage should be finalized at the LOI stage. These factors form the bedrock of any real estate transaction.
Naturally, you would expect that the terms negotiated in an LOI (Letter of Intent) would be reflected in the lease agreement. However, there’s a chance this won’t happen – so it is essential to double-check everything and make sure your landlord has included all previously bargained-for details in the final Lease agreement.
2) Check the Lease Terms and extensions.
Whenever you lease a space, make sure that the term length is something with which you can live. In Thailand, the lease term is normally for 3 years and then renewable with a certain increase in the rental price. It’s also wise to discuss the renewal/ extension possibilities and the % increase in the rental price after 3 years. This is particularly relevant when obtaining business loans; most lenders/banks mandate that the duration of your loan should be equal to that of the contract’s length!
3) Fit-Out/ Renovation
When starting a new lease, most tenants engage in some kind of buildout. It is important to remember that your landlord will typically need to approve designs, layout plan, M&E System, and contractors used.
Furthermore, you as the tenant are liable for any liens placed on your property by construction workers or subcontractors – an expensive, burdensome dilemma best avoided with assistance from a reputable interior design company/ contractor who can guarantee payments are made timely, projects remain within schedule, and lien releases procured accordingly.
4) Damages
1) Suppose your space suffers from damage caused by a fire, flood or other occurrence, normally the landlord is only responsible for restoring it to its grey shell condition—bare walls and floor. Therefore, you’ll be accountable for redoing any finishes that were damaged in addition to replacing personal property, fixtures and/or equipment that was destroyed. For this reason alone having good insurance coverage is essential!
and
2) If the building sustains substantial damage, landlords may choose to either repair it or terminate the lease. Since this situation would benefit both parties, try negotiating a termination right if possible. Moreover, always ensure that your rent is abated while any repairs are being conducted.
Why us?
Make your leasing endeavor a success with Amazing Properties Real Estate Agency. Our many years of market experience and local insights have enabled us to acquire exceptional industry expertise.
With up-to-date information and direct landlord connections, you can make informed decisions that yield maximum returns on investment.
Tap into our expansive network and take advantage of meaningful connections we have founded on trustworthiness, expertise, and insight.
Amazing Properties is here to help you with all your real estate needs!
Are you looking for a commercial space in Bangkok?
You are welcome to browse our website with a great selection of rental options or feel free to contact us via
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Website: www.amazingproperties.org
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