Phnom Penh Class A Office Market

TL;DR

• Cambodian banks (ACLEDA, Canadia Bank), Chinese FDI tenants, and garment HQs anchor demand.
• Vattanac Capital Tower and Diamond Island anchor the post-2010 trophy tier.
• Cambodian corporate tax of 20% with active special economic zone incentives.
• Class A market is dollarized — most rents quoted and paid in USD.

Overview

Phnom Penh's Class A market remains in early-stage development. Cambodian banks, Chinese FDI tenants, garment and footwear HQs, and a growing professional services tenancy anchor demand. The Vattanac Capital Tower and Diamond Island anchor the post-2010 trophy tier. Vacancy is elevated reflecting recent supply delivery.

Market snapshot

Composite of Q1 2026 broker market reports for Phnom Penh (JLL, CBRE, Cushman & Wakefield, Colliers, Knight Frank, Savills).

Lease norms

Cambodian gross structure (rent inclusive of management fees). Rents typically quoted in USD/sqm/month. 3-5 year terms standard. Rent-free of 4-8 months on 3-year terms plus USD 100-300/sqm TI typical.

Transit & access

Bus and tuk-tuk; no metro or rail. Phnom Penh International Airport is a 30-minute drive from central Phnom Penh. New Techo International Airport (south of city) opened 2024.

Tax

Cambodian corporate tax of 20% (with SEZ incentives reducing to 0% for qualifying years). 10% VAT.

Talent

Emerging finance, BPO, garment, and services talent. Royal University of Phnom Penh, Institute of Technology of Cambodia, and ACLEDA Institute anchor the local pipeline. Multilingual (Khmer, English, Chinese, French) talent supports FDI tenancy.

Notable Class A buildings

• Vattanac Capital Tower · Daun Penh — Tallest building in Cambodia.
• Canadia Tower · Daun Penh — Canadia Bank HQ.
• Phnom Penh Tower · Boeung Keng Kang
• Diamond Island (Koh Pich) Office Cluster · Diamond Island — Master-planned mixed-use.
• Hyundai Motor Tower · Daun Penh

Class A submarkets in Phnom Penh

• Daun Penh — Heritage CBD and trophy core. (trophy)
• Boeung Keng Kang — Embassy and expat district. (prime)
• Diamond Island (Koh Pich) — Master-planned post-2015 mixed-use district. (trophy)
• Chamkar Mon / Toul Tom Poung — Inner-southern Class A. (prime)
• Sen Sok / Toul Kork — Northern suburban growth Class A. (established)

Phnom Penh deep-dives

• Rents and incentives — What does Class A rent cost and what concessions are typical?
• Sublease market — How deep is sublease">sublease availability and how does it price?
• ESG and LEED stock — How much certified stock exists and what premium does it command?
• Transit and commute — Which submarkets have the strongest transit access?
• Talent and salaries — What does the white-collar talent pool look like and how is it priced?
• Fit-out costs — What does a Class A fit-out">fit-out cost per square foot?
• Flex vs lease — When does premium coworking beat a traditional lease?
• Taxes and incentives — What corporate, occupancy, and property taxes apply?
• Neighborhoods overview — Which Class A submarkets exist and how do they compare?
• Notable buildings — Which trophy assets define the market?
• Class A vs Class B — What is the spread between Class A and Class B and why?
• Leasing conventions — What lease structures, terms, and concessions are normal?
• Expansion checklist — What is the operational checklist for opening here?
• Relocation guide — How do you move into this market from another city?
• Frequently asked questions — Quick answers to the questions occupiers ask most.
• Operating expenses — What service charges, OpEx, and pass-throughs apply on top of rent?
• Growth and availability — How tight is current availability and what does the pipeline look like?
• Sustainability pathways — How do tenants land net-zero or science-based-target leases here?
• Hybrid work policy — How are hybrid policies shaping office demand here?
• Security and redundancy — What security, power, and connectivity redundancy are standard?
• Lab and R&D space — What does R&D-grade or wet-lab space look like in this market?
• Brand experience — How do trophy buildings function as brand experiences and showpieces?
• Fund strategy and flag — Which submarkets carry the strongest investor flag for funds?
• Exit and renewal — How do you handle a Class A renewal or exit cleanly here?
• Market cycle position — Where is this Class A market in its cycle right now?

Frequently asked questions

How developed is the Phnom Penh Class A market?

Early-stage. Trophy product is concentrated in 4-5 buildings (Vattanac, Canadia, Phnom Penh Tower, Diamond Island). Broader Class A inventory is shallow but expanding.

What is the role of Chinese FDI?

Material. Chinese FDI in real estate, hospitality, and infrastructure has driven a wave of mixed-use and Class A delivery since 2015. Some post-2022 supply softening reflects Chinese capital outflow restrictions.

Is the market dollarized?

Yes. Most Class A rents are quoted and paid in USD; the Cambodian riel is pegged informally to the dollar. This limits FX risk for international tenants.