SINGAPORE (EDGEPROP) - JLL’s decision to transplant its Singapore corporate headquarters from Republic Plaza, where it had been for the past 24 years, to CapitaSpring signals a new era in the global real estate firm’s history. “What we have built in CapitaSpring is the next generation office space,” says Chris Archibold, country head, JLL Singapore.

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While the shift may have been accelerated by the Covid-19 pandemic, it was not driven by it, he adds. This is evident from the fact that it had moved its Asia Pacific headquarters to Paya Lebar Quarter (PLQ) in September 2019 before the pandemic. It now occupies 46,251 sq ft at PLQ.

There are many similarities between the space at PLQ and at CapitaSpring, where it has taken up 23,592 sq ft of office space on the 35th floor of the 51-storey Grade-A office tower at 88 Market Street in the CBD. In total, JLL occupies 69,843 sq ft of office space across these two locations in Singapore. This is more than double the 30,000 sq ft space it had occupied across three floors at Republic Plaza. “Our office at Republic Plaza had rows and rows of seats because it was built in an era centred around efficiency, whereas the space at PLQ and CapitaSpring is built around productivity and wellness,” says Archibold.

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The office at CapitaSpring is fitted with an air purification system that monitors air quality in real-time, with proactive settings to maintain clean air throughout the workspace. These features align with the Platinum Well certification standards set by the International Well Building Institute. There are more than 200 real plants to enhance wellness.

The space at CapitaSpring was designed to be “human-centric”, with a sense of community and dedicated areas for staff to socialise. Amenities to enhance these spaces include a barista-hosted coffee bar and beer tap that is complimentary to all staff.

Usage sensors allow JLL to understand space usage and to tweak spaces that are less popular. “During Covid, it has also helped ensure we maintain safe distancing and occupancy protocols,” says Archibold.

‘Digitised transaction process’

A big part of the change in work trends has been driven by technology, observes Archibold. “As such, we have invested a lot of time and money into equipping this office [at CapitaSpring] with the latest technology to make our staff more productive and also to facilitate a better client experience,” he adds.

The space houses a “first of its kind” media room fitted with screens, cameras and modular furniture to facilitate filming, live streaming as well as the development of multimedia content. There is also a dedicated presentation suite that facilitates JLL’s proprietary NXT software, which has digitised the entire office leasing transaction process. “This is a game changer,” says Archibold.

Traditionally, a client looking for office space would discuss with a broker the space requirements, budget and possible locations. They would then narrow down the available options and spend two or three days visiting the various office spaces to figure out what they like or dislike.

The NXT software is based on JLL’s exhaustive database of Singapore office space built over the past eight years. When a client walks into the presentation suite at JLL’s office at CapitaSpring, there will be a short presentation on the overall office market. The discussion will then centre on the client’s requirements: Existing headcount, anticipated headcount over the next two to five years and desk-sharing ratio based on the number of people working in the office and working from home. A calculator will work out the desk-sharing ratio and the amount of space needed, based on these parameters.

The NXT software will pull out all the available options in the market. The client will then decide on the preferred location: whether CBD or non-CBD. The list of options would then be shortened accordingly. The client will be able to view floor plans of the office units, Matterport videos of the office interiors and exterior of the building, the stacking plan of the building and views from the office unit. They will be able to see a pie chart of the tenant mix within the building and the top occupiers there.

The shortlist would eventually be whittled down to three or five choices. More details on these choices can still be called up, including current and historical rents. “It’s like a barometer of where rents have been in the past,” says Archibold. “There’s also a rental tracker to give you a sense of where rents are heading.”

Time-saver

The software can also show the vacancy rate in the building and where the vacant units are. “By the end of the presentation, the client will have a good idea of the buildings in their shortlist,” says Archibold. “They may spend two hours in that presentation, and physically visit just five buildings from their shortlist.”

A camera is installed at the back of the presentation suite which allows the clients’ colleagues from another country or another office to join their colleagues in the room and participate in the process. “It’s an interactive process, and you can have as many people as you like in the meeting,” he adds. “In the decision-making process, quite often there is a local management person, a local CRE [corporate real estate] person, but there may also be an overseas CRE person or management person who is part of the decision-making process.”

There is also an automated discounted cash flow calculator that shows the total cost based on the prevailing rental rate. As the whole process is automated, the client can revisit it by changing the parameters, for instance, increasing the desk sharing ratio, and they can do this in real-time.

“Looking at it from a client value-add point of view, I would much rather go through the NXT process than the traditional way,” says Archibold. “It enables clients to better understand the office market, saves the senior management time and shortens the transaction process from two to three days traditionally, to a matter of two hours in the presentation suite, sitting in air-conditioned comfort with a cup of coffee.”

The idea for the NXT software was initiated by JLL’s office in Paris and is now available in its offices in London and Frankfurt as well. In Asia, the Singapore office at CapitaSpring is the first to have that software. It will be rolled out in Hong Kong, Tokyo and Sydney too.

Technology, sustainability

The technology powering the new office space at CapitaSpring is from JLL Technologies (JLLT). It was one of the companies that JLL Spark, the technology innovation arm of JLL, invested in. Back in 2018, JLL Spark, the technology innovation arm of JLL, launched a US$100 million global venture fund to invest in companies focused on leveraging technology to improve the real estate experience.

JLLT also launched JLL Jet, the mobile application used to book meeting rooms, and access the building and the smart lockers. JLLT also serves other clients in their real estate technological needs. “As a professional services firm we are always looking to broaden our transactional and advisory services in areas that will help our clients,” says Archibold.

Besides technology, the area of demand that is growing the fastest is energy sustainability services (ESS). It is an area that JLL is very focused on both globally and locally, says Archibold.

According to JLL Research last year, 70% of companies are willing to pay a rental premium to lease sustainability-certified buildings. About 40% of corporate occupiers have already adopted net-zero targets and another 40% are planning to adopt targets by 2025. “This goes to show that corporate occupiers will increasingly prioritise locations that help them reduce carbon emissions, this will drive investors to focus on green building investments,” says Archibold.

Workplace strategy

Beside JLLT and ESS, another new business line that JLL is active in is workplace strategy. “These are the three most common topics that we end up talking about to occupiers: technology, sustainability and workplace strategy,” says Archibold.

Hence, JLL Singapore’s office space at CapitaSpring and Asia Pacific headquarters at PLQ have become showcases for their corporate clients. “I see a lot of renovation taking place and companies trying to work out their desk sharing ratio,” says Archibold. “Most occupiers are struggling with that because they don’t know what their flexibility ratio is going to be in terms of work from home.” This is not just the challenge that companies have in Singapore, but in other countries which are returning to normality, he adds.

Surveying the office space at CapitaSpring, Archibold says, “We want to create an atmosphere where people enjoy coming to work. We don’t charge for drinks at the bar. The tap is available all day but people generally don’t drink during the day.”

Even the barista is under the management of JLL’s facility management team. The design of the office space at CapitaSpring, project management and facility management are all done in-house by JLL. The ceiling LED light installation is by Singapore design practice Superstructure.

“It’s certainly not a cheap office fitout,” Archibold concedes. “But we will get a return from it, no question. When you look at the cost of human capital, the cost of staff turnover, and retaining good people, frankly, it’s the right thing to do.”

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