Bangkok Commercial Real Estate

Bangkok, Thailand Bangkok and its Commercial Real Estate Market are unique in many respects. Did You Know… · Bangkok, the capital and largest city of Thailand, is the commercial, political, educational, financial, and cultural center of the country. Bangkok is also the 22nd most populous city in the world and one of the major economic and financial centers in Southeast Asia. Bangkok has an altitude of one hundred feet above sea level, and has one of highest average temperatures in the world. · Bangkok produces about 40% of the country’s total GDP, or over $230 billion. Its GDP per capita is around $20,000, which is one of the highest in Southeast Asia. · Bangkok houses the headquarters of most of the national and international firms in the country, the nation’s stock exchange, and Thailand's largest commercial banks and financial institutions. Many multinational companies operate regional headquarters in Bangkok because the cost of operation in the city is less than in most rival Asian cities. · Bangkok, with about 1,000 skyscrapers, has one of the fastest high-rise construction rates, and is one of the world’s most popular tourist destinations thanks to the city’s wealth of cultural sites. Tourism, with over 15 million visitors per year, is one of Bangkok’s most important industries, generating 5% of the nation’s GDP. · The city has a large number of private and public universities, including Thailand’s oldest university, Chulalongkorn University. In order to overcome traffic jams, the local government has expanded the expressway, built several elevated highways and second level roads, and is building a high speed elevated railroad. The city is served by Don Mueang and Suvarnabhumi international airports. · Political instability and poor business sentiment in recent months have slowed the commercial real estate and investment markets. Bangkok is experiencing low supply and low demand, and a decrease in rental prices. Absorption in the office market during 1Q 2009 was only 16,500 ft². Currently there are 14.5 million ft² of class A in the CDB, and 2.15 million ft² will be added over the next 2 years. · With no new class A projects completed in 1H 2007, the prime retail stock continues at 34.9 million ft². About 290,600 ft² will be finished in 4Q 2007. Total stock in the industrial market is 1,789 million.

Bangkok Population 7.5 million Area 605 mi2 Av. Ann. Temp 83o F Av. Ann Rainfall 57 inches Elevation 100 feet GDP Per Capita $20,000 Thailand GDP - Purchasing PP $596 billion GDP Per Capita $9,200 Real GDP Growth 4.8% Inflation Rate 5.1% Labor Force 36.4 million Unemployment Rate 2.1% Literacy Rate 93% Exchange Rate 1$ = 32.5 THB Average Rental Rates 1Q 2009 (USD/Sq Ft/Month) Sector Net Rent Vacancy Office A - CBD $1.53 11.3% Retail A - CBD $4.11 6.2% Manufacturing $0.47 N/A For further information on doing business in this market, please contact: Don Cox ITRA / Don Cox Company don@doncox.com +1 (512) 478-1711