Expanding horizons of office space

The outlook for corporate real estate has changed over the years. Sectors such as IT and ITeS, retail, consulting and e-commerce have registered high demand for office space in recent times. Office space absorption in 2017 across the top eight cities amounted to 18 million sq ft (msf) as of September 2017. Private equity inflow in office and IT/ITES/BFSI real estate has grown 150 per cent between 2014 and 2017. In 2017, new retail space of 6.4 million square feet has finished and supply of around 20 million square feet is expected by 2019. Here are some office space trends and factors  that are defining the demand and supply for office spaces in India:

• Rise of co-working spaces: Need to leverage spaces has given rise to the concept of co-working spaces. There is an increasing focus on transforming under-utilised real estate assets and providing affordable work spaces for entrepreneurs, especially in the backdrop of the country’s burgeoning start-up ecosystem. Past few years have seen mushrooming of co-working spaces in major cities in India. The market appears to have reached its saturation point, however, there is still scope for growth with the arrival of international names in this space. 
• Small Office, Home Office (SOHO) is a new model of apartment combining two functions: living and working. SOHO is the top choice for the millennials with start-ups. Even for a foreign expert who is finding an apt location for their representative office, and the foreign investor who follows the new trend of investments.  
• SOHO owners can stay overnight and enjoy the facilities of the apartment. This two-in-one office provides owners with economic benefit, too, due to the optimisation in investment cost of equipment, personnel, decoration, management, overnight accommodation. At the same time, this office provide workers with a good conditions to work productively. This model is popular in metros as these spaces optimise space, without compromising on facilities in accordance with the living trends. 
• More nature, more outdoor coming in and more sustainable features. And perhaps less real estate developer involvement. The overarching trend is the entrepreneurs pushing new ideas for design forward. 
• Innovation & technology will be the biggest drivers of change  over the next few years. With a call for more flexible working hours already,  people are spending less physical time at their formal office. They want spaces that actually cater for, and enhance, their working lives.
• There is a growing trend towards use of technology in managing the modern office spaces. An increase in the use of smart technology has been seen. Building automation,  safety, telecommunication, and user systems are more in demand. Smart buildings are being conceptualised where a provision for people, systems and objects to interact innovatively is created. 
• Leasing has been replaced by buying in office space segment. Occupiers of office space are now looking to buy those spaces instead of leasing them out with a long-term vision of building a bigger corporate India market.