For institutional fund strategies, Daun Penh carries the strongest investor flag in Phnom Penh, with prime yields around 8%.

  • Trophy submarket (Daun Penh) carries the strongest investor flag.
  • Prime yield: 8%.
  • Core funds buy income; value-add buys repositioning of secondary stock.
  • Cap-rate spread between trophy and secondary has widened post-2022.

Phnom Penh office fund strategy and flag

For institutional fund strategies, Daun Penh carries the strongest investor flag in Phnom Penh, with prime yields around 8%.

TL;DR

  • Trophy submarket (Daun Penh) carries the strongest investor flag.
  • Prime yield: 8%.
  • Core funds buy income; value-add buys repositioning of secondary stock.
  • Cap-rate spread between trophy and secondary has widened post-2022.

Where core funds buy

Core capital concentrates in trophy stock with long-WAULT income. In Phnom Penh, that's Daun Penh and assets like Vattanac Capital Tower, Canadia Tower.

Where value-add looks

Value-add capital looks at secondary Class A and convertible Class B with repositioning angle. The trophy/secondary cap-rate spread has widened post-2022, which has reopened the value-add basis for repositioning plays.

Key facts

cityPhnom Penh
countryCambodia
regionAPAC
classARentLocal264 USD/sqft/yr
classARentUsd$264/sqft/yr
vacancy22.4%
typicalLeaseYears3
typicalRentFreeMonths6
submarkets5
primeYieldPct8%
primeYield8%
trophyAnchorDaun Penh

Frequently asked questions

Where do core funds buy in Phnom Penh?
Trophy submarket — Daun Penh — and the most defensible long-WAULT assets within it.

Editorial provenance

Reviewed by Class A Atlas Editorial Desk — House byline · global editorial team. Last updated 2026-04-15. See our methodology and editorial standards.

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