Amid sluggish demand for commercial real estate, developers are having to invest greater sums in co-living programmes to provide an enhanced quality of life for office workers in a bid to attract new tenants, according to SET-listed Asset World Corp (AWC).
Wallapa Traisorat, chief executive and president of AWC, said demand for office space hasn't been strong when compared with the past few years. The sluggish rate of growth prompted office developers to add several attractive facilities to their offerings in an effort to draw new tenants.
Mrs Wallapa said the market trend showed that 60% of leading companies prioritised the quality of life of their executives and employees when consider the rental of office space.
Newer companies and multinational corporations want to improve the quality of life of their employees by offering additional options, such as co-working spaces and other useful facilities.
To boost Thailand's competitiveness as a global destination for workplaces to the level of Hong Kong and Singapore, she said the government should try to attract multinational corporations by offering interesting incentives.
For example, an attractive tax rate or free work visas could be offered to operators planning to open new office in Thailand.
At present, AWC is the largest office landlord in the country, offering 270,000 square metres of lettable space within four office buildings.
AWC on Monday officially launched The Empire Residence, a co-living space located on the 53rd floor of the Empire.
The Empire Residence covers over 1,500 sq m in total and has 24 functional zones, including meeting rooms, an eatery and bar, a games room, a pets room, a kids room and a lounge.
Mrs Wallapa said there aren't many office projects that offer useful living spaces such as an area for playing games, an area for relaxation, and provide shower facilities in a single location for use by a tenant's employees.
The Empire Residence will also serve as an extension space for office tenants, as they will also be able to meet guests and allow temporary contract workers to use these areas.
Mrs Wallapa said AWC invested around 2 billion baht to refurbish lobby lounges and add co-living programmes to the Empire Tower, comprising the Empire Residence; Cafe Pittore, located on the ground floor; the outdoor lounge area on the 10th and 11th floors; the wellness bar on the 52nd floor; and the EA Rooftop area from the 55th floor to the 60th floor.
The company also plans to develop a new lobby lounge at the Athenee Tower, and transform its Interlink Tower Bangna into a lifestyle-integrated office by adding food lounges.
For its hospitality segment, it will introduce two to three bedroom residences to its new hotels, with new facilities that can cater to long-stay tourism trends, she said.
AWC will open 18 projects next year, including restaurants and hotels, such as Pattaya Marriott Resort & Spa at Jomtien Beach.
Its five-year plan, worth 100 billion baht, involves investments in 50 projects.