Technology companies are now demanding more office space in Bangkok than ever before and this growing demand is likely to increase in the short term in response to the growing digital economy, according to JLL. Office developers will need to understand what tech firms are looking for from their space in order to tap into this growing demand.
“Some 70-75% of leading technology companies in Bangkok are considered as large office tenants occupying over 1,000 square meters of space. Leasing activity by technology companies has increased in recent years, with a number of long-established technology companies expanding and many start-ups opening sizeable offices across the city,” says Yupa Sathienpabayut, JLL Head of Office Leasing, to the Bangkok Post.
A pair of major technologies organisations recently took up office space in the G Tower on Ratchadaphisek Road. Online shopping platform Shopee opened its new office with 4,000 square meters of space in the building while Huawei Technologies leased 10,000 square meters of space and plans on opening an office there later in the year.
“It is interesting to note that over the past few years, many technology occupiers have upgraded their premises from serviced to proper offices and from older to newer buildings. Whether they belong-established businesses or startups, most of these companies focus on high-quality office space in close proximity to mass transit stations,” says Yupa.
Tech companies face a battle for talent and this has forced them to consider rail and bus transit connectivity when selecting office space as these are important to employees. Accessibility of the buildings is expected to continue to be an important factor for tech companies when selecting new office locations.
“The rapid growth of the digital economy will continue to fuel demand for office space from technology companies in Bangkok. Developers and investors that can demonstrate how their building meets technology occupiers’ major requirements will have a good chance to enjoy demand from this booming sector,” says Yupa.
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