Thursday, June 8, 2023
The Property Reporter
  • Home
  • News
  • Retail
  • Residential
  • Office
  • Industrial
  • Hotel
  • Buying a Home
  • Selling a Home
No Result
View All Result
  • Home
  • News
  • Retail
  • Residential
  • Office
  • Industrial
  • Hotel
  • Buying a Home
  • Selling a Home
No Result
View All Result
The Property Reporter
No Result
View All Result
Home Office

India’s flexible office space stock to cross 60 million sq ft by 2023

PrR by PrR
2021-11-23
in Office
0
India’s flexible office space stock to cross 60 million sq ft by 2023
20
SHARES
156
VIEWS
Share on FacebookShare on Twitter


Flexible workspace stock is expected to cross 60 million sq ft in metro and non-metro cities by 2023, as occupiers embrace agility and flexibility in their work models, mentioned a joint report by Colliers and Qdesq.

The demand for flex space will be largely driven by Consulting, IT-BPM, and E-commerce companies that are establishing multiple satellite offices in suburban locations in metro cities. Metro cities remain the stronghold of flex spaces, accounting for about 88% of the total flex stock as of Q3 2021, mentioned in the report.

“Reverse migration to Tier 2 cities, the constant growth of new startups, and increased occupier confidence driven by vaccination rates have helped in overall improvement of the flex industry across the country. The flex market in India is evolving with many enterprises incorporating a flex space component in their portfolio. It is encouraging that flex spaces are currently operating at about 70%, with the trend moving towards pre-pandemic levels. Occupiers are looking at next-generation offices and the future workplaces will be unique to each occupier. Flex workspace operators must continue to focus on customization and providing on-demand workspaces,” said Ramesh Nair, CEO (India) and MD (Market Development-Asia), Colliers.

The flex market in India is evolving with many enterprises incorporating a flex space component in their portfolio. There are currently 3410 flexible centres across major cities, operating at about 70%, with the trend moving towards pre-pandemic levels.

“The next 12-18 months is expected to witness businesses of all sizes reassessing the use of their office. The importance of agility and decentralization has been underlined and highlighted by the pandemic and will become critical to businesses as they adapt to change, impelling the industry forward and that’s what the future looks like for India. Making Flex mainstream”, said Paras Arora, Founder CEO, Qdesq.

Flex space is also emerging in non-metro cities as large enterprises are moving to a decentralised structure focusing on flexibility and convenience of their employees. The total flex stock in non-metro cities to reach 7.8 mn sq ft by 2023, a 50% increase from current levels.

Major non-metros like Ahmedabad, Coimbatore, Indore, Jaipur, Kochi and Lucknow are witnessing robust activity and are the top 6 emerging non-metro flex locations.

After a dip in occupancy and prices during covid, flex space is reviving in the latter part of 2021 with an average occupancy of 71%. Prices per seat have also seen an improvement by 21% as of September 2021, after falling by about 30% during the pandemic.

“Metro cities are seeing renewed demand from occupiers across the spectrum in the latter part of 2021. Even in non-metro cities, occupiers are taking up seats for their sales and regional offices, leading to higher occupancy. Occupiers are evaluating the concept of ‘work from near home through satellite and hub-and-spoke offices. We foresee that these offices will be an amalgamation of traditional leases and flex spaces,” says Vimal Nadar, Senior Director and Head of Research, Colliers India.

Colliers recommends flex space operators to focus on enhancing occupier experience by digitizing workspaces and providing add-on services, which shall receive more inquiries. As occupiers focus on health and wellness, demand for well-managed Grade-A properties with superior infrastructure is ought to increase. The inclusion of digital infrastructure and smart facilities shall also contribute in achieving greater operational efficiency, reducing energy consumption and higher customer retention.



Source link

Previous Post

Longtime Employees Say Roosevelt Hotel Remains Shut Down Without Answers, Leaving Them In Limbo – CBS New York

Next Post

EXCLUSIVE: San Francisco Police Chief ‘there has to be some accountability’ on retail thefts

Next Post
EXCLUSIVE: San Francisco Police Chief ‘there has to be some accountability’ on retail thefts

EXCLUSIVE: San Francisco Police Chief 'there has to be some accountability' on retail thefts

RECOMMENDED

Office Doom or Boom? Unveiling the Post-Pandemic Property Paradox By Property Reporter June 8, 2023 Work-from-home or work-from-office? Dive into the seismic shifts shaping the commercial real estate market. From looming threats to surprising opportunities, this exposé reveals the strategies of winners in the 'donut effect' landscape. Investors, banks, and real estate developers - brace yourselves for an eye-opening journey through the unexpected twists and turns of a post-pandemic property market. Find out: Is your glass half-empty, or is it brimming with untapped potential? As the work-from-home era continues, the commercial real estate market is facing a reckoning. Offices across the United States are sitting empty, and banks that have lent heavily to the sector are bracing for impact. The problem is twofold. First, the rise of remote work has led to a decline in demand for office space. Second, the Federal Reserve's decision to raise interest rates has made it more expensive for businesses to borrow money. The combination of these factors is putting a strain on the commercial real estate market. In the first quarter of 2023, the value of office properties in the United States fell by 15% from its peak in 2021. And the number of commercial real estate loans that are delinquent or in default is on the rise. Banks are particularly vulnerable to the downturn in the commercial real estate market. They have lent billions of dollars to businesses to buy and develop office buildings. And if those businesses default on their loans, the banks could be left holding the bag. The Federal Reserve is aware of the risks posed by the commercial real estate market. In a recent speech, Fed Chair Jerome Powell said that the central bank is "watching it pretty closely." But Powell also said that he believes the banks are "strong" and "resilient." Only time will tell whether Powell is right. But the signs are not good. The commercial real estate market is in trouble, and banks are in the crosshairs. The donut effect: How COVID-19 shapes real estate The COVID-19 pandemic has substantially reshaped the real estate landscape across America's largest cities, contributing to a phenomenon known as the 'donut effect'. According to a study by Arjun Ramani and Nicholas Bloom, published by the National Bureau of Economic Research, rents in high-density areas and central business districts have seen a significant decline of over 10 percent since the pandemic's inception. This trend is attributed to a shift in housing demand within cities; from crowded, dense urban centers to more spacious suburbs. Yet, the move from pricier cities to more affordable ones hasn't seen a comparable momentum, suggesting a still-anchored preference for urban living despite space-seeking trends. One of the most significant changes enforced by the pandemic is the new working model, namely remote work, which has led to plummeting commercial office occupancy rates. This new work dynamic has caused commercial property prices in densely populated zip codes to drop drastically. Ramani and Bloom propose that falling property values in cities are likely a result of wealthier and more skilled residents leaving high-value properties. This demographic shift not only alters the urban landscape but also raises significant concerns over the financial health of cities; a decrease in property values translates to diminished property taxes, thereby potentially straining city budgets. As cities and the real estate market continue to adjust, the long-term impacts of these trends remain to be seen. What does this mean for the economy? The downturn in the commercial real estate market could have a ripple effect throughout the economy. Businesses that are struggling to make payments on their office loans may be forced to lay off workers or close their doors. This could lead to a slowdown in economic growth and a rise in unemployment. The government could take steps to mitigate the damage. For example, the Federal Reserve could offer loans to banks that are struggling with commercial real estate losses. Or the government could provide tax breaks to businesses that keep their workers employed. But there is no easy solution to the problem. The downturn in the commercial real estate market is a sign of the changing times. The work-from-home era is here, and it is having a major impact on the way we work and live. Adapting to the New Normal: Alfa Group Leverages 'Donut Effect' for Innovative Workplace Solutions in Budapest The seismic shift in work dynamics brought about by the pandemic has led to a seemingly paradoxical situation; despite the highest employment levels recorded in recent history, offices remain deserted. The 'donut effect' suggests that properties in less congested areas may experience increased demand as a consequence of these transformations. Amidst this backdrop, Alfa Group, an innovative real estate firm, has been pushing the envelope, advocating for and developing real estate that aligns with the evolving desires and requirements of its users. Embracing this new trend, Alfa Group has announced the completion of its latest development - an office building in Budapest's 11th district, a location away from the hustle and bustle of the city. As per the 'donut effect', such offices poised in less crowded zones are expected to be the beneficiaries of the current shift. Ohad Epschtein, the founder and CEO of Alfa Group International, comments on the company's latest venture: "At Alfa Group, we have always believed in moving with the times. This new office development is our response to the shifting landscape of work. It is designed to cater to a new generation of workers who value space, flexibility, and the balance between connectivity and tranquility. We're confident that these thoughtful spaces will resonate with the demands of the post-pandemic workforce."

Office Doom or Boom? Unveiling the Post-Pandemic Property Paradox

2023-06-08
Office Rental Market in Hungary and CEE: The Growing Gap Between New and Older Office Buildings

Office Rental Market in Hungary and CEE: The Growing Gap Between New and Older Office Buildings

2023-04-25

MOST VIEWED

  • Fox Lake hopes to bring hotel to Mineola lakefront site; ‘Recognizing our unique position on the Chain O’ Lakes is a key driver for our progress’ – Chicago Tribune

    Fox Lake hopes to bring hotel to Mineola lakefront site; ‘Recognizing our unique position on the Chain O’ Lakes is a key driver for our progress’ – Chicago Tribune

    756 shares
    Share 302 Tweet 189
  • Doubling Down With the Derricos’ Deon boasts about ‘buying up blocks’ & promotes real estate business after foreclosure

    193 shares
    Share 77 Tweet 48
  • Historic home on 32-acre site annexed into Elgin for new industrial development free to anyone who wants to move it

    157 shares
    Share 63 Tweet 39
  • Plas Glynllifon’s new owner speaks for first time on difficult challenge to renovate mansion

    120 shares
    Share 48 Tweet 30
  • Atlanta developer plans downtown Dallas towers

    94 shares
    Share 38 Tweet 24

Recent Posts

  • Office Doom or Boom? Unveiling the Post-Pandemic Property Paradox
  • Office Rental Market in Hungary and CEE: The Growing Gap Between New and Older Office Buildings
  • Reviving the High Street: Strategies for Reinvigorating Brick-and-Mortar Retail
  • The Rise of Experiential Retail: How Retailers are Creating Memorable In-Store Experiences
  • Alternative Investment Opportunities in Real Estate: Exploring Niche Markets

CATEGORY

  • Buying a Home
  • Hotel
  • Industrial
  • News
  • Office
  • Residential
  • Retail
  • Selling a Home
  • Privacy & Policy
  • About Us
  • Contact Us
  • Advertise with us

© 2021 Copyright Property Reporter

No Result
View All Result
  • Home
  • News
  • Retail
  • Residential
  • Office
  • Industrial
  • Hotel
  • Buying a Home
  • Selling a Home

© 2021 Copyright Property Reporter