The rise of the ‘new districts’ is a trend that is happening across the world, and is discussed in our latest global publication Global Cities 2015 Report, http://www.knightfrank.com/globalcities but whilst staff retention and attraction are also central to a company’s decision making process in Bangkok, the emergence of Bangkok’s new districts is also being driven by other factors.
Bangkok has a scarcity of prime development sites, and as such prices are climbing. In fact prime development sites in Bangkok topped the region in our recent Knight Frank Prime Asia Development Land Index, where Bangkok saw the largest increase at a stellar 18.2% in H1 2014. http://bit.ly/1t4ilNG
As occupancies climb to over 90% in the city’s high rise office towers, eyes are being cast towards locations that were previously shunned by larger firms. Facilitated by improved access via mass transit and advancing rents, locations such as Rachadapisek and Rama 9 have become increasingly popular, both with developers and occupiers who enjoy abundant retail, quality buildings, and convenient access, without the CBD rental premium.
Today more than ever technology and mass transit has made office locations less about being convenient for clients, and more about being close to where staff live and play. So perhaps it is only natural that locations such as Thonglor, Ekamai and Phaholyothin, which were once primarily regarded as high net worth residential locations, have become fashionable with young entrepreneurs who shun suits, ties and traditional office towers for jeans, coffee, and collaborative co-working spaces.
This trend looks set to continue, Bangkok has almost 200kms of mass transit routes under construction or being planned to complete over the next 10 years, and as it does, our notion of what makes a Bangkok business district will have to adapt.
To quote from our Global Cities report “the challenge for the Global Cities is balancing the conflicting demands of accommodating the new wave of firms, and their workers, in the same highly sought after districts”.
If you haven’t already followed that link to the report, I urge you to do so, its free and makes for a fascinating read with unique insights into the future of our work, and our cities.
Grab it at the link below: