Serviced office operator Regus Thailand expects growing demand from business startups to stimulate occupancy rate in the sector this year. Country manager Paul MacAndrew said Thai startups are growing significantly each year. They normally need to start their business at once, looking for office space with scalability and flexibility. "As the region's hub, Thailand and more specifically Bangkok is a growing centre of commerce with an expanding startup culture," he said. "There is real demand in Bangkok for office space solutions that act as a springboard in catapulting these new enterprises." Major provinces such as Chiang Mai also record growing demand. Regus has teamed up with the project owner of a six-storey building in the northern city to add serviced office space of around 800 square metres, due for launch next year. The project will be a mixed-use development offering a hotel, apartments and office space. It is located near the Chiang Mai airport, said Mr MacAndrew. In May, Regus opened of 700 sq m of serviced office space with 103 work stations at Royal Phuket Marina. Demand comes largely from professional services like accountancy, construction and law firms. The yacht club was recently put up for sale but it should not affect the office space as Regus has a long-term co-development contract with the current owner, he said. "Many project or property owners, especially in the provinces, want to draw building tenants that contribute to other commercial tenants. Co-development with them on a profit-sharing basis is our new expansion strategy in the provinces as it can save on expansion costs," said Mr MacAndrew. Royal Phuket Marina was the company's 18th branch and its first expansion under a co-development strategy, followed by the space in Chiang Mai. Regus is seeking more opportunities to branch out in major provinces. Listed on the London Stock Exchange with headquarters in Luxembourg, Regus entered Thailand in 2000 with a serviced office centre of 1,300 sq m at M Thai Tower. It has over 22,000 sq m of serviced office space in Bangkok, Si Racha and Phuket. Regus expects to increase its occupancy rate to 80% this year from 70% last year.
Regus Thailand aims to capitalise on the growing start-up culture in Thailand, partnering with the owner of a six-storey building close to Chiang Mai airport. The company is planning to open its first office there next year, and has already signed up about 20 staff from Thailand. Relevance: The new space brings Regus' year-to-date total of new properties to 51, and its total number of locations worldwide to 2,819.