From Midtown Manhattan to Nariman Point in Mumbai, the CBDs were known for the soaring prices to match the soaring skyscrapers and swanky offices within. The demand for these areas stayed unrelenting through the years even as alternative, cooler areas kept mushrooming around ever-expanding cities.
Cue-in a global pandemic and subsequent lockdown that made the office irrelevant, albeit temporarily. At the peak of WFH conversations, the fact remained – that the office would survive. But where and in what form was the question?
Did having an office in a prime CBD finally lose its appeal?
Covid-19 disrupted behaviour, businesses, and lives but it also begged reflection of accepted norms. One such norm was the prestige associated with owning mammoth offices, incurring monumental RE costs and bringing the entire workforce to a centralised space. When WFH proved to be almost as effective, and the dangers of having the entire team in one location more apparent – what was justifying the cost of the office space?
The answer is not black & white and the latest CRE reports suggest contradictory findings. While CBDs in some cosmopolitan cities saw an initial drop in rental prices, others remain unchanged. The impact varied based on geography and industry; it also fluctuated based on the severity and occurrence of Covid waves.
Say hello to your neighbourhood office
Maybe neighbourhood is exaggerating things a bit but thanks to an abundance of flex operators, rising adoption of hybrid models and an emerging culture of remote working; office spaces are sprouting up in hitherto unexplored micromarkets. We already witnessed a preference for more flexible working options with the millennials; and with Gen Z joining the workforce during the pandemic, this preference has catapulted into a requirement. The overall real estate market is feeling and anticipating the ripples of change with a rise in demand by occupiers in Tier 2 cities and the domino effect it would have on not just commercial but also residential rentals.
The Office is going places: Next destination – Tier 2
Tier 2 is the dark horse in the growing Bharat story and flex spaces are playing an instrumental role in driving this development. Reverse migration, talent availability and lower rentals have attracted occupiers with almost half of them using flex spaces and 78% planning to expand within a year, as per 2021 ‘Flex your workplace’ report by JLL & Awfis.
Awfis’ foray into tier 2 cities couldn’t have happened at a more opportune time. With our presence already established in Ahmedabad, Indore, Bhubhaneswar and planned expansion in Jaipur, Coimbatore and Lucknow, we are not only the largest pan-India network but also a trusted brand name, built over a period of time through our consistent delivery of high-quality and low-cost workspaces, irrespective of geography.
We’ve witnessed organisations change their workplace strategy to be more employee-centric and move from a ‘come to office’ edict to a ‘let us bring the office to you’ culture and it’s exciting that we’ve played a key role in making this shift possible.
If we’re not in your city yet, we will be, sooner than you think. Do stay updated by following us on Twitter, Instagram, Facebook and LinkedIn.
