Bangkok is the 10th most affordable premium office location in the world, according to the latest "Premium Office Rent Tracker" by real estate consultancy JLL. The Thai capital was seventh in 2018, reflecting continued growth in occupancy costs in Bangkok.
JLL's findings show the average annual premium occupancy cost (including rent, taxes and service charges) in Bangkok grew by 7%, from US$42 per square foot in 2018 to $45 in 2019. Strong demand for premium office space amid the lack of new supply contributed greatly to the rental growth.
Despite the drop in the ranking, Bangkok's premium occupancy costs remain nearly five times cheaper than the Hong Kong-Central sub-market, the world's most expensive premium office location, and 2.5 times lower than Singapore, which has the highest cost in Southeast Asia. It is also one of the most affordable premium office locations in Asia, ranking third after Chengdu and Kuala Lumpur.
The rent index, now in its fifth edition, crunches data on achievable rents in the highest quality buildings in the premier office districts of 61 cities. It provides a snapshot of premium office dynamics in 86 office sub-markets.
While only a fraction of a city's corporate base will pay such premium rents, the tracker benchmarks office occupation costs on a like-for-like basis, providing a barometer of relative city attraction and highlighting the intense strains that many cities face as their real estate markets try to accommodate growth.
What office occupiers want: JLL's global "Future of Work" survey has found major corporations seek to achieve a wide range of objectives through improving the workplace experience. Some 55% say they hope to enhance collaboration, 48% want to drive innovation, and 42% aim to attract and retain talent. While optimal experience is specific to organisations and locations, access to spaces for employees across a range of activities will be essential ingredients of premium office space.
Flexibility is the key, with the proportion of office space dedicated to flexible and agile workplace concepts expected to rise to 31% by 2020, according to the survey.
Sustainability and corporate responsibility are rising on corporate and personal agendas, so green features and services -- from access to greenery to minimising resource utilisation -- are also increasingly important.
The provision of community-focused activities and hospitality-style amenities catering to the preferences of employees, largely underpinned by technology, is also becoming an expectation.