Emerging trends in office real estate sector in India

By Ashish Bhutani, CEO, Bhutani Group

New Delhi, June 06, 2018: For the corporate and office occupiers, India’s real estate has a huge potential.

Since Indian cities offer the largest corporate spaces in Asia, emerging trends hint towards huge potential in the next few years for the further development of the corporate real estate. Many of such office occupiers are confident about this trend and see it as a bright opportunity for developing brand value while focusing on employee-friendly and environmentally-conscious spaces as well.

• Pre-committed spaces for future needs

Considering the shortage of good quality office spaces, multinationals are going a step ahead and choosingpre-commitspaces for their future needs and portfolio optimisation. Examples include Google, Bank of America, Gartner and BCG which are pre-committing spaces in properties including NCR’s Unitech Signature Tower and Cyber Park by DLF.

• Buying instead of leasing

Instead of leasing properties, many corporates are opting for buying properties as part of their long-term vision of longer occupancy such as Lava International which secured a large land for setting up its manufacturing unit in Greater Noida, IKEA’s buying of close to 10 acres of land parcel from HUDA in Gurgaon, Hyundai buying commercial space in Sector 29, Gurgaon and relocating its office there, or GSK’s buy-in of close to 60,000 square feet of space in Hines One Horizon Centre On Golf Course Road, Gurgaon.

• Longer lease terms

Instead of standard lease terms of 9 years, corporates in Delhi NCR are negotiating a 12-15 year lease term for want of occupational rights for longer terms and to protect themselves from rental rises.

• Agile workplaces and collaborating spaces for employees

The design of a workplace reflects its whole philosophy and the culture that it prides itself in. Occupiers have a strong commitment towards building a habitat/working space that reflects intrinsically on the employees and owners.

• Sense of belongingness and extended use of technology

It is important that the place the occupier chooses gives a sense of belongingness, trust and efficiency to the employees as well as the owners. Many of the corporates are aware of the fact and are investing in emerging technologies like automation and robotics. For instance, Amazon which invested in a robotic company, Kiva Systems in 2012, has more than 45,000 robots in various centres.

• Entering into partnerships with co-working office space brands

Corporates are paying close attention to the widespread choices when partnering with co-working brands. These also include benefits like flexibility in lease terms, attractive design and vibrant environment for employees. The occupiers can lease need-based office space by hour or day or month or on long-term basis.

• Achieving space efficiencies

Through real estate consolidations or merging multiple office spaces in to one, corporates have been able to achieve 40-45 per cent savings in their operational costs as well as gain employee satisfaction, improve logistics and increase overall profitability of business.

• Environment-friendly spaces which are smarter as well

Occupiers have plenty to gain from environment-friendly spaces which consume optimal energy and are also a hub of amenities, last mile connectivity, rich landscape and requisite infrastructure.

Corporate real estate strategies are focussed around increasing business operations and their profitability by catering to the various stakeholders that matter to it.

Corporate Comm India(CCI Newswire)