The Bangkok office market, especially in the central business district (CBD), will become increasingly competitive when the next wave of new- generation buildings is completed.
Some of these buildings are currently being built while the construction of others is about to start, forcing office developers to provide a unique workplace experience to attract and retain tenants.
Landlords continue to focus on delivering LEED-certified "green" buildings to meet tenants' carbon-emission standards and be cost-efficient.
The WELL Building Standard has become increasingly more popular among developers who are seeking a new industry certification standard to differentiate their projects from their competitors by enhancing occupants' health and wellness.
LEED certification, introduced in 2000 by the US Green Building Council (USGBC), is designed to decrease energy usage and environmental impact of buildings while creating a healthy indoor environment.
Over the past years, a number of LEED-certified offices were introduced in Bangkok, such as Park Ventures Ecoplex, Gaysorn Tower, AIA Capital Center, AIA Sathorn Tower, Sathorn Square, and FYI Center.
To date, there are 20 LEED-Platinum-certified properties in Thailand, accounting for over 450,000 square metres of built area and over 95% are office developments.
In 2014, the WELL Building Standard was introduced with notable figures in their advisory board. They ranged from CEOs of large real estate development firms to sustainability advocates like Leonardo DiCaprio.
This building standard focuses exclusively on the impacts of building design and construction on employees' health and well-being.
The core values of the WELL Building Standard are air, water, nourishment, light, fitness, comfort, and mind. This takes into account how people live, work, eat, and physically and mentally react to their indoor working environment.
Two grade-A office buildings in Bangkok, One Bangkok and The PARQ, are in the process of obtaining a WELL certification, most likely making them the first WELL-certified projects in Thailand.
CBRE believes that developers of future office buildings will place greater emphasis on the well-being of occupiers.
Companies will have higher expectations from offices to deliver wellness on physical and mental levels, which explains the introduction of building certifications to accurately measure a building's intrinsic value.
If developers want to attract and retain tenants, a productive environment must be provided to maximise workforce efficiency.
This means that cost, location, and surrounding amenities will no longer be the only key factors that drive companies' decision-making when selecting office premises.
We will see this more clearly in 2022 when a big increase in supply will be seen in the Bangkok office market. Landlords will have to compete to secure tenants to fill their office space. WELL-certified office buildings will have a competitive edge over older buildings.
Pobporn Svetasobhana is an analyst at Research and Consulting, CBRE Thailand. He can be reached at bangkok@cbre.co.th Facebook: CBREThailand LinkedIn: CBRE Thailand LINE@: CBRE Thailand Twitter: @CBREThailand and website: www.cbre.co.th