The COVID-19 pandemic has left its impact on our life, and it is also true for the commercial real estate sector. There is a trend of using flexible office spaces for corporate purposes, and that’s why real estate investors have focused on investing in a flexible office. The large corporate houses think of choosing a office space for rent in Bangalore to grow their businesses and engage more workers remotely. This trend has resulted in the higher popularity of community work environments. In the past years, there has been a steady rise in flexible office spaces. But, the use of these spaces has become more prominent since the pandemic has caused travel restrictions.
As flexible space has started shaking up the corporate markets, investors are searching for opportunities to focus on the recent corporate demand. In India and several other countries, a flexible workplace segment is growing steadily. According to the latest projection, flexible workspace operators’ lease can reach more than 8.8 million sq. ft. across cities, like Chennai, Bengaluru, Delhi-NCR, Kolkata, Hyderabad, Pune, and Mumbai.
Coworking office spaces in Bangalore
On average, the flexible workspace size has increased by 40% in the past 2 years. Several operators have acquired large spaces and buildings. In recent months, several companies have chosenhybrid work modelsto help their employees in working remotely. These companies have partnered with different co-working operators and managed office owners.
It is true that pandemic has resulted in negativity in every sector. But, in the present office market in India, there has been a sign of positive developments due to this pandemic. It signals that the corporate real estate market will remain stable. International investors will also try to find a way of investing in this market.
Bengaluru-based RMZ sold commercial assets to Brookfield. Prestige group, another prominent player, has made an agreement with Blackstone to sell commercial real estate for more than Rs 9,000 crore. These big deals in the commercial real estate sector indicate that the Indian office market has retained its strength.
Developers have tried to monetize commercial assets and use funds for debt reduction. They are also dealing with some projects related to premium office space. Thus, flexible workspace providers have found hope of longevity in the market.
Flexible office spaces, also known as the on-demand workplaces have gained popularity for several reasons.
Corporate bodies making a shift from traditional workplaces-
The commercial real estate properties are increasingly becoming costlier. Several organizations also find it as a big investment to start a business. That is why they think of deciding on shifting their workers to flex office spaces, which provide them with on-demand facilities. It will enable them to reduce the long-term investment. In case of flexible office space, corporate will find a way of operating its business and employing workers without geographical restrictions. This decision is also economically viable to startups and small businesses.
Flexible office spaces- Advantageous for every entrepreneur
From freelancers to small enterprises, everyone will find a flexible office as the most Commercial Office Space for Rent in Manyata Tech Park acceptable. The co-working environment is advantageous and valuable to them. While starting a business, a company always has a limited budget, and that’s why the flexible office can be the perfect solution for you. During the first few years of business operation, a company can continue using this co-working space.
Office space in central zones is the most preferred option
Prime areas of a city are the most desired destinations for companies looking for flexible office units. These workplaces provide them with a range of different facilities. Moreover, it is also easy to move to adjacent suburbs for several business purposes. Especially, Tier II and III cities are the major targets of corporate bodies. That is why the price of real estate in these cities is also high for investors.
Flexible office space- Dominated by branded players
A few years ago, local unbranded players had been dominating in the flexible office space. But, recently, branded operators have started playing a vital role, and their occupancy level is on the right. Thus, the commercial real estate is presently drawing several branded players.
Better ROI and higher rental trends
By investing in flexible office spaces, investors have an opportunity of getting higher returns. The hike in the price of commercial real estate is more than that of residential properties. Moreover, rental rates of co-working spaces are never stable, and they get increased every 3 to 4 years.
Ensure a better level of occupancy–
Recently, you can find an increase in unused space in the commercial sector. Empty desks are signs of the waste in commercial real estate industry.
To solve the problem, flexible workspaces have become the ultimate solution. However, landlords try to find an advantage from it by repurposing the space. They reposition and rebuild office spaces to draw the attention of several new tenants. The collaborative space, open floor design, innovative seating arrangements can accommodate several workers.
Customizable at an affordable rate
Customizability is one of the major facts about the flex space. For instance, when tenants need to have more office space, they can easily do it with customization. It does not cost much to remodel and redesign the office.
Diversification is another positive side of the flex space. Multi-tenant commercial buildings are mostly designed for white collar workers, like insurance agencies, law firms, and financial institutions. However, flex assets attract tenants from different industries, ranging from construction companies to restaurants. Thus, landlords can mitigate risk by involving diversified tenants that include both local and national ones.
It can be concluded that the flexible commercial office space for rent in Bangalore has become the biggest target to several property investors. These investors have found signs of profitability in this property market, as lots of companies are making a shift to the co-working space.
The trend will continue in the coming years. A flexible workspace is the best investment option, as it is resistant to the pandemic effects. Moreover, strategic lease models are available in this commercial real estate sector. In the future, several international investors may like to invest in this industry.