Financial Feasibility Study of Investment Project on the Construction of Flexible Working Space for Rent in Bangkok’s Central Business District

Abstract

This article presents a feasibility study of investment project on the construction of a flexible working space office building in the central business area of Bangkok.Project proposals, space design, investment budget, and location of 5 construction projects of working spaces for rent in Bangkok’s central business district were studied to analyze marketing, technical, and legal feasibilities.The main objective of this research was to study the financial feasibility of Triple A Construction Project through project’s cost and revenue estimation with regards to the payback period, net present value, internal rate of return, and profitability index Additionally, a project risk analysis was conducted through analysis of the sensitivity of input factors and conditional situation of the project. The results suggest that the growth in demand for office-for-rent working spaces does not correspond to the incoming supply, which contributes to the decline in the overall occupancy rate of lower than 85%. O-ONES Tower Project, for instance, presents the outline and space designing that support the flexible working concept the most. However, in terms of financial feasibility, Triple A may not be a worthwhile investment because of the project’s negative net present value and low internal rate of return.