A room containing serving racks that technology companies usually need for their offices is shown in this file photo taken in November 2015. (Photo by Carl Lender/CC BY 2.0)

Growth in demand from technology firms for office space in Bangkok has been remarkable in recent years and is likely to accelerate in the near term in response to the growing digital economy.

Understanding what technology firms are looking for from their office space will enable office developers and investors to tap into technology sector occupational demand better, according to property services firm JLL.

"Some 70-75% of leading technology companies in Bangkok are considered as large office tenants occupying over 1,000 sq m 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," said Yupa Sathienpabayut, head of office leasing at JLL.

"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 be long-established businesses or start-ups, most of these companies focus on high-quality office space in close proximity to mass transit stations," she added.

For instance, Shopee, a leading online shopping platform, has recently opened its new office with 4,000 sq m of space at G Tower on Ratchadaphisek Road with easy access to an MRT station. At this same building, Huawei Technologies leased 10,000 sq m of space where its new office will be fully open later this year. The lease agreements for both companies were managed by JLL.

"We are also currently representing a number of technology companies in the office search and lease negotiation, with space requirements ranging from 1,000 sq m to 4,000 sq m," says Ms Yupa.

Her comment is supported by a recent research report by JLL titled Tech firm office location choice. According to the report, technology firms realise a multitude of benefits from leasing high-quality space, such as efficiency, good image and branding for their company, and favourable working environment that helps boost productivity and retain and attract talent.

JLL's research also unveils findings from a survey on what technology firms look for when leasing office space.  The findings identify the top three requirements that technology companies prioritise. They are power supply and backup, floor plate, and transit connection.

Power supply and backup

The importance of a high-quality and stable power supply provided by the building to technology occupiers cannot be understated. The volume of data that companies are capturing and analysing has grown exponentially in recent years.

Many technology firms continue to store large volumes of data onsite, meaning they are housing many server racks within their offices. Power backup is essential to minimising downtime, loss of contact with servers housed offsite and ensuring the continuity of business operations.

It is often facilitated by permanent electrical generators which automatically power on in the event of a brownout or blackout.

Floor plate

According to the survey, floor plate size and layout was the second most frequent technology specification. Tech firms want large floor plates with good layouts that allow them flexibility in their stacking plans.

Larger and more efficient floor plates allow occupiers to lease comparatively less space than in buildings which feature smaller and more constrictive floor plates.

In addition, technology occupiers frequently cite a related consideration when leasing space: room for expansion within the building. Floor plates that facilitate the flexible and efficient use of space can help landlords accommodate the growth needs of technology firms.

Transit connections

The war for talent has put pressure on technology firms to prioritise rail and bus transit connectivity when making a leasing decision. Companies need to consider the effect of real estate on talent and JLL's results indicate they also need to consider the accessibility of the buildings where they locate.

"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," Ms Yupa concludes.