Bangkok is the world’s 10th most affordable premium office location
The city dropped three places from 2018
The latest Premium Office Rent Tracker by global real estate consultant JLL reveals that Bangkok is the 10th most affordable premium office location in the world. The ranking dropped from the 7th in the 2018 report, driven by a continued growth in the city’s premium occupancy costs.
JLL’s findings reveals that the average annual premium occupancy cost (including rent, taxes and service charges) in Thailand’s capital grew by 7% from USD42 per square foot in 2018 to USD45 in 2019. Strong demand for premium office space amidst the lack of new supply contributed greatly to the rental growth.
Despite the drop in JLL’s ranking, Bangkok’s premium occupancy costs remained nearly five times cheaper than the Hong Kong-Central submarket, the world’s most expensive premium office location, and 2.5 times lower than Singapore that fetches the highest premium occupancy cost in Southeast Asia. It is also one of the most affordable premium office locations in Asia, ranking third after Chendu and Kuala Lumpur.
JLL’s Premium Office Rent Tracker (PORT), now in its fourth edition, crunches data on the achievable rent in the highest quality building in the premier office districts of 61 cities. The fifth edition of JLL’s PORT provides a snapshot of premium office dynamics in 86 office sub-markets across 73 cities. 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 are now facing as their real estate markets try to accommodate growth.
What Do Occupiers Seek from Premium Space?
JLL’s global Future of Work Survey has found that major corporates seek to achieve a wide range of objectives through improving the workplace experience. 55% say that they hope to enhance collaboration; 48% want to drive innovation; and 42% aim to attract and retain talent.
While optimal experience is by necessity specific to organisations and locations, experience levers include access to spaces for employees across a range of activities, which will be essential ingredients of premium office space going forward. Flexibility is key, with the proportion of portfolios dedicated to flexible and agile workplace concepts expected to rise to 31% by 2020 according to the Future of Work 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 increasingly important. The provision of community-focused activities and hospitality-style amenities catered to the preferences and needs of employees, and largely underpinned by technology, is also becoming an expectation.
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.3 billion, operations in over 80 countries and a global workforce of nearly 92,000 as of June 30, 2019. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com