Tag MNCs

Since the aftermath of the pandemic world, It was observed new age businesses in India were witnessing a revolutionary shift in office space dynamics driven by cost optimization strategies, where startups casted their vote in favor of the customized/ tailored solutions. Since the paradigm shift, the demand for innovative and adaptable office spaces has never been higher for India’s dynamic startup ecosystem.

Also by providing hassle-free, fully customizable office spaces solutions, enabled enterprises to optimize their operational efficiency without the constraints of traditional leasing models. This approach not only supported the dynamic nature of startups but also appealed to established companies seeking agility and cost-effectiveness in their workspace solutions and it catered specifically to the unique needs of startups or leading MNCs. These customized solutions further assisted with emphasizing on the seamless integration of technology, cultural alignment, and efficient management and also worked wonders in reshaping work environments to foster creativity, collaboration and productivity, making them an indispensable asset for startups and Fortune 500 companies.

As per a recent study by Colliers,it was observed that Flex spaces were becoming an integral part of occupiers’ portfolio, with its share in occupiers’ total portfolio rising to an estimated 10-12% in 2023, from 5-8% before the pandemic in 2019, which made startups recognize and embrace the myriad of financial advantages provided by tailored made solutions. Looking at the tremendous growth opportunity in providing tailored made solution;

Here are the top 3 firms thriving in an increasingly competitive market to spearhead in various sector to revolutionize startup office with its tailored made offerings

Flipspaces (Commercial design): Flipspaces is a Global Real Estate Expansion Management venture with End-to-end solutions for CUSTOMISED DESIGN and BUILD for Commercial Spaces. They have developed an in-house proprietary technology for VR-supported video walkthroughs, a first in the industry and a proven game changer. It is instrumental in not only letting businesses visualize their site in advance but also critical for minimum variation in the estimated budget and timelines during the fit-out period. Apart from this, they also share the Client Application with your own username and password to check all the updates of your projects, be it your customized layouts, 3D Renders, Project Updates and more. For nearly a decade, they have successfully executed 700+ projects covering more than 7 Million Sq.Ft. space. Our cutting-edge technology, in-house manufacturing capabilities, tech-enabled project management & execution coupled with a huge team of qualified vendors – differentiate them from other competitors – as we deliver all services with supreme quality, quick turn-around time, and cost benefits.

Onward Workspaces (Co-working spaces): Onward Workspaces is dedicated to providing innovative and flexible workspace solutions tailored to the needs of modern businesses. With a range of co-working spaces, managed office solutions, and virtual office services, Onward Workspaces is committed to fostering productive and inspiring work environments.

Skootr (Managed office spaces): Skootr is India’s foremost ‘Premium Managed Office Space’ provider, where we co-create world-class workspaces & experiences for enterprises. With Grade A assets & best in class services, Skootr has become India’s go-to’ brand for bespoke offices amongst top international clients. Skootr offers ‘Space as a service’ wherein enterprises get the benefits of a hassle-free, fully customized flexible office space without locking up growth capital in CapEx.

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Delhi, 16^th July 2024: Accessing any real estate company’s performance based on ESG becomes crucial as the real estate sector is the 2^nd largest employer in India, accounting for 39% of carbon emissions. The government’s constant push to achieve net zero emissions by 2070 is likely to play a pivotal role in shaping the real estate market in India.

As per Vestian Research, over 65% of Grade A office space across India’s top 7 cities is green-certified. Moreover, among 1,362 Grade A buildings, 805 (or 59%) boast of green certifications, highlighting India’s growing commitment to sustainable construction.

As India’s office market attracts global occupiers, developers are increasingly prioritizing international certifications. This trend is reflected in the dominance of LEED certification, which accounts for a remarkable 74% share as of Q2 2024. Moreover, Gold is the most prominent certification in the Indian office market as 49% of buildings are certified gold under LEED and 51% are accredited gold under IGBC.

Note: Data for Grade A buildings considered for the analysis

Source: Vestian Research

City-wise Analysis

Southern cities (Bengaluru, Chennai, and Hyderabad) account for 58% of the total green stock pan-India. Bengaluru accounts for the highest, 172 Mn sq ft, green stock amongst the top seven cities of India.  Chennai accounts for the highest percentage share, 83%, of green stock out of the city’s total Grade A stock.

Despite having the lowest stock for Grade A office buildings in pan-India, 62% of the area is green-certified in Kolkata. On the other hand, Pune has the lowest percentage, 56%, of green-certified office buildings despite the prominence of MNCs in city leasing.

Built-up Area-wise Analysis

Grade A office buildings with a built-up area of less than 5 lakh sq ft account for 47% of the total number of green-certified buildings. On the other hand, office buildings with a built-up area of more than 10 lakh sq ft account for only 19% of the total number of green-certified buildings. Despite this, 90% of the total projects within this category still qualify as green buildings, showcasing a strong focus on sustainability. Notably, green certification is rare in office buildings with a built-up area of less than 1 lakh sq ft. This signifies lower preference for sustainability practices amongst small and medium-scale developers and occupiers.

Green-certified Projects Command Premium in Rental Values

Note: Data for Grade A buildings considered for the analysis

Source: Vestian Research

Green-certified buildings command a 12% to 14% premium on average over non-green buildings. This demonstrates that developers are rewarded for initial investment in costly sustainable development, as they can charge a premium from occupiers.

Bengaluru leads the pack with a premium of 23-25% with Chennai and Hyderabad following behind at 12-14% and 13-15%, respectively. This suggests a strong focus on sustainability in these tech hubs, where companies are willing to paya premium to promote environmental responsibility and enhance employee well-being. Developers in Mumbai and Pune charge 8-12% premium in rentals for green-certified buildings compared to non-certified areas.

Gurugram/NCR, March 15, 2024: Gurugram’s Golf Course Extension Road (GCER) is quickly becoming the city’s hottest address for big businesses! The past year saw a massive jump in companies looking for new-age office spaces along this stretch. This boom is being driven by two main reasons: resilient Indian economy prompting international companies (MNCs) to entering and setting up shop in India, and businesses are increasingly looking to provide employee experience centric sustainable workspaces close to employee catchment.

The commercial real estate scene in Gurugram is abuzz with excitement and that is reflected in AIPL Business Club, an iconic landmark on the Golf Course Extension Road has clinched a deal exceeding Rs 100 per square foot in rental value, a benchmark for this location.

AIPL has secured leases for 6,12,000 square feet of space within this property from the leading companies. The total area of this commercial project spans over 6 Lakhs square feet, offering amenities such as 17000 square feet dedicated food court, 6 level car parking etc. The leading names i.e. Deloitte, Cargill Foods, British Airways, Ford Motor Company and many more have already chosen to set up their offices at AIPL Business Club and currently boasts of 96% occupancy.

Commenting on this development Mr Anil Pankaj Singh, (VP – Corporate Leasing) AIPL, told that this extraordinary feat not only marks a significant milestone for the property but also symbolizes a broader trend in the industry—Grade A office spaces are commanding unparalleled demand and value like never before.

While multinational corporations continue to bolster their presence in India, there is a parallel trend of domestic companies gravitating towards Grade A office spaces, particularly those built with sustainable features. For instance, in cities like Gurugram, flight to quality is evident and tenants are increasingly willing to pay a premium for office complexes constructed in accordance with green building standards.

“Rental rates have escalated across most business districts in Gurugram, with the Golf Course Extension Road experiencing a major appreciation. Given the limited availability of Grade A office spaces, we anticipate sustained strong demand and further upward trends on rental rates throughout 2024” added Mr Singh.

Over the last few years, Golf Course Extension Road has gained reputation as the next big hub within Gurgaon owing to its strategic location, attracting key social and civic infrastructure.

This region enjoys a network of well-built roads and highways linking it with rest of the state and outside, through NH-8, South Peripheral Road (SPR), and an exclusive freeway connecting Rajiv Chowk to Sohna in just 20 minutes.

The Golf Course Extension Road is very strategically integrated with one of the country’s largest infrastructure projects, the Delhi-Mumbai Industrial Corridor (DMIC) and the Delhi-Mumbai Expressway through NH-8.

This area also boasts of connectivity to Indira Gandhi International Airport in just half an hour and Dwarka Expressway, that provides easy access to various parts of the capital city of Delhi. The Golf Course Extension Road is becoming a hotspot for the leading developers like Godrej, Anantraj including DLF who has recently acquired a 29 acre land parcel.