CONSULTANCY SERVICE FOR THE ASSESSMENT OF THE COMMON AREA AND PRODUCTION OF A RENTAL MODEL FOR S ...

ESCAP requires a qualified consultant to apply the appropriate real estate industry standard for use in assessing current and future spaces within the ESCAP compound. The ESCAP complex consists of three (3) buildings located on the same area at the intersection of Rajadamnern Nok Avenue and Phadung Krungkasem Road. The complex occupies a total of 17 rai (approx. 6.7 acre) and is adjacent to the Military Headquarter as well as the Wat Makut Temple. The three buildings include the Secretariat Building, the Service Building, and the United Nations Conference Centre (UNCC ESCAP owns the buildings and rents office space within its complex to primarily United Nations international non-profit organizations and secondly commercial entities in accordance to UN resolutions. Accordingly, with the principle that the rental rate should be the equivalent that of a commercial Thai market rental for equal or similar properties, including utilities, air-conditioning, access, parking, custodial services, integrated services, security and regular maintenance of general building fixtures and services. Due to this, the current rental rates must be re-assessed in order to establish consistency with the current/forecasted commercial market rates. In the past and continuing up to the present, rental rates have been determined by external consultants in keeping with the prevailing market rates. While the consultants have assessed the building conditions and associated services that exist within the ESCAP compound, no calculation methodology or rental model involving the concept of common areas and the shared use of space was ever sought. As a result, deliverables from the previous consultancy work generated only one (1) basic rental rate per sqm for the current year, along with projected rate figures for the ensuing years. ESCAP is in the process of implementing a Seismic Mitigation and Life Cycle Replacement Project (SMP). The project is due to begin construction in 2021 and last for 2 to 4 years. Within the project scope the Secretariat building’s interior renovation will be completely redesigned with a new open plan layout. Therefore, post renovation, UN Agencies (lessees) who rent spaces from ESCAP (lessor) will have access to common spaces which are not available in the current lease agreement. These common spaces will consist of; Local, on the same Block as lessee; Semi local, on the same Floor; Remote, spaces on other floors or within the premises. These common resources will be shared by all occupants not only lessees. In addition, COVID-19 has ushered in new challenges involving facilities maintenance and space management. Issues have been raised and continue to emerge regarding the health and safety of building occupants, especially when it comes to how ESCAP allocates and manages spaces that are individually occupied or collectively shared. In light of the pandemic and ongoing issues, the Consultant will also be required to take into account COVID-19 concerns and space reassessment initiatives in areas that will likely affect the well-being of ESCAP’s building occupants In consideration of the space configuration changes and current challenges, the Consultant is to propose viable rental models for all office space within the premises, taking into account the different types of shared areas. The Consultant is expected to conduct an assessment of the entire ESCAP premises and present “holistic solutions” to address the existing shared space, as well as to deal with the common area concept proposed under the coming SMP. Resultant findings and recommendations shall provide for a realistic and practical rental model to be applied for all types of situation where the concept of space sharing for mutual benefit (lessor and lessee) is applied by ESCAP.