APAC Office Fit Out Cost Guide 2023

ASIA PACIFIC OFFICE FIT OUT COST GUIDE 2023

Cushman & Wakefield Singapore Office

PROCUREMENT

TECHNOLOGY

As highlighted above, technology can also contribute to sustainability goals through smart systems, sensors and energy efficient appliances. However, it goes further. A shift to cloud computing now allows for smaller server rooms, which therefore require not only less space, but also less cooling systems. Similarly, asset sensors can alert facilities managers when preventative maintenance is due to help prevent system failures.

It also includes the notion of “social procurement” – using buying power to produce social benefits over and above the value of the goods or service. In its simplest form, this could be “buying local”, though heightened government regulation and corporate responsibility go beyond this to procure goods and services from marginalised groups or engage social benefit suppliers in their supply chains.

Supply chains and therefore by proxy, procurement, have come increasingly under the spotlight since the onset of the COVID-19 pandemic. This has been primarily driven by increased supply chain stress, causing not only project timing delays through bottlenecks, but also budgetary pressures associated with scarcity of product and higher transport costs. Accordingly, there is increasing financial pressure to target shorter supply chains, but the gains can extend well beyond financial benefit. The pandemic has also led to changes in design preferences for commercial spaces, with a greater emphasis on hygiene and social distancing measures. This can require changes to the design and layout of commercial interior fit outs, which can also impact availability of suppliers, project timelines and costs. Specifically, re-evaluating supply chains can feed directly into achieving both Environmental, Social and Governance (ESG) goals as well as Corporate Social Responsibility (CSR) goals. This means sourcing environmentally friendly materials closer to home, ideally within an environmentally efficient supply chain, which can also assist with reducing Scope 3 emissions.

Within the new design paradigm that focuses on employee experience, productivity and wellness together with environmental sustainability, technology plays a more integral role than ever. Technology now runs through all aspects of office fit outs, and it is for this reason there has been an increase in the proportion of fit out budgets allocated to technology. On-site demands include the need for space booking systems, as well as the latest tools to facilitate collaboration and connection. However, the closer focus on DE&I also means creating an equality of experience no matter how, where, or when employees choose to work. Alongside this, the increasing proportion of Generation Z (born 1997-2012) in the workplace, who are “digital natives”, will increasingly expect effortless connectivity. Further consideration needs to be given to charging devices and whether this occurs through static (fixed power points) or mobile charging practices or a combination of the two. Ultimately, this means connecting the human experience to the digital experience and the building experience.

Re-evaluating supply chains can feed directly into achieving both ESG goals as well as CSR goals. This means sourcing environmentally friendly materials closer to home, ideally within an environmentally efficient supply chain, which can also assist with reducing Scope 3 emissions.

The key message here is that technology is not only an enabler of change, but also a way of measuring the impacts of that change and should be deployed as such.

Nitasha Sreekumar Technology Lead Asia Pacific

Tim Foster Head of Supply Chain & Logistics Advisory Asia Pacific

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