Commercial Real estate has become more service oriented than product specific
Realty+ in conversation with Subrata K C Sharma, COO commercial, Brigade Group
How has the occupier profiles changed in the last few years?
The Tech and ITES sectors continue to dominate the commercial space occupancy followed by e-commerce and Fintech. Manufacturing, AI, Bigdata and logistics sectors constitute the rest of the occupier’s profile. The year 2017 saw a major change in commercial real estate with the entry of co-working spaces in the country. As per a JLL report, co-working space will continue to grow at an exponential pace and is expected to hit 8.5 mn seats by 2020. We also foresee demand from occupiers for co-working space increasing in the coming years.
What are the major implications of new Occupation Profiles on workspace real estate?
In today’s scenario, commercial Real estate has become more service oriented than product specific and these implications are quite significant. The workspaces of today are focussed more towards a customer centric model.
- Flexible free spaces – Customisable office spaces, which allows occupiers to take control on the fit-outs, flooring and customisable models.
- Designs – Promoting relationship of workspace with human, design and functional aspects.
- Productivity & Innovation – Indirectly connecting a workspace environment with productivity, like bringing in natural elements, natural light, ventilations, adjustable desks which directly / indirectly improves efficiency.
- Location dynamics – This is another strategic implication is location of a workspace. The commercial spaces with better communal connect and amenities also contributes towards selection office spaces.
Are Occupiers now in the position to make greater demands on workspace providers? Why?
Yes, the demand exists by default and the demand comes from all industry sectors, especially the new age companies who choose contemporary office spaces over traditional spaces. The workspaces with interesting and modern façades, informal meeting areas, greater access to public transport, sensitivity to employee wellness, sustainability etc. remain in the checklist of high-profile occupiers and it influences the decision makers of SMEs and Digital/Tech communities. The reason is to attract the best talent in the industry and to kindle creativity and innovation within companies which thereby improve the overall efficiency.
Which occupier sectors are dominating the flexible workspace market and why?
Flexible or coworking spaces consumption is led by Tech, E-commerce and Media companies. We also see interest from BSFI, start up and freelancing communities. The primary advantage with coworking is the cost advantage and office space that is readymade which results in minimal cost to set up and additional amenities like game zones etc. The workspaces also come with a lesser lock-in period.
Which occupier sectors are dominating the prime office space in CBDs and Why?
CBD occupancy is dominated by BFSI, Consulting, media, IT & back offices for manufacturing and engineering companies. We are also observing enhanced preference for select developments in the CBD by many IT Majors. CBD areas have its advantages in terms of significant visibility, accessibility and superior social infrastructure.
Which are the largest commercial occupiers of Brigade and how much is the area acquired?
Our major occupiers are from the IT, e-commerce, fintech and manufacturing companies. They constitute almost 80% of our occupancy.