New Delhi: The Covid-19 pandemic has made it realizing that India’s commercial office segment will never be the same again. Most of the corporates and employees have recognized the benefits of remote working. While it is unrealistic to think that traditional offices will disappear entirely, it is likely that the hybrid office model will become the new normal.
A hybrid office has some employees who work in the office, while others work from home. Some employees will remain in the office to do their jobs, while some prefer to work in the office, and others may still need to go to the office on occasion. Employees can work in a variety of locations, including corporate offices, coworking spaces, public spaces, and from home.
According to a report titled ‘The Future is Flex’, property consultant CBRE South Asia has estimated that India’s flexible office space will expand by 10-15% year-on-year, and Tier 1 and 2 cities during the next three years. Will run this flexible space. industry.
With the uncertainties induced by the pandemic, many large corporates are looking to exit long-term leases, which is why companies like 3M. welspun and starbucks has shifted its Indian headquarters to work together space to optimize cost. A co-working space does not allow companies to incur huge capital expenditures for commercial real estate.
Colliers International expects flexible workspace operators to lease 3 million square feet of space in the top six Indian cities this year.
“Initially, the growth of co-working spaces was limited to the top 6 cities. However, after the pandemic, operators are expanding to Tier-II cities. We are now seeing large enterprises setting up satellites and sales offices in smaller cities. Furthermore, hyper-local delivery players are taking up smaller office space in many locations as they expand into smaller cities. We expect this trend to continue and demand for e-commerce and fintech over the next two years. Many of these existing centers are currently operating at over 70% occupancy levels,” said Ramesh Nair, chief executive officer, India and managing director, market development, Asia, Colliers.
However, while many corporates were initially excited about work from home, it is no longer the most preferred mode of work due to employee burnout, organization culture and team bonding concerns. Employees faced problems regarding collaboration, mentorship, negotiation and personal attention. Loneliness and mental health became major risks. A recent study by LinkedIn revealed that a majority 7 out of 10 young Indian professions feel that remote working as a whole will negatively impact career growth. 55% of professionals feel handicapped by a lack of adequate opportunities for learning, due to “less face-time with bosses and leaders” and “learning from peers remotely” (34%).
Nearly half of India’s workforce is willing to return to the cubicle, as they view the workplace as more conducive to productive work, while 9 out of 10 (86%) respondents believe that the hybrid work model is positive for work- Life affects balance.
By the beginning of 2022, Wipro Adopting a hybrid model and recalling employees. Marico, one of India’s leading FMCG companies, is also planning to introduce the hybrid model. Google is also adopting a “hybrid workplace, where about 60 percent of employees will be together at the office a few days each week, another 20 percent will work in different office locations, and the remaining 20 percent will work from home. . Employees have “work”. anywhere from a week”.
NS microsoft work trends index Hybrid paradox revealed: People want flexibility to work from anywhere, but they crave more personal connections together. “Companies will need to actively build new habits and ensure that no matter where employees work, they feel that they belong, that they are being engaged in the conversation, and That managers are supportive of their diverse needs and work styles. This is especially true of underrepresented groups in the entire American workforce, who feel less involved than others.”
The second half of 2021 is already seeing a change in the way co-working companies work, and new-age commercial spaces need to focus on = personal collaboration and flexibility in the office. The key is to create floor plans that are open, but also offer more of an enclosed space.
According to Cushman & Wakefield, leasing of flexible workspaces by corporates grew 73% to 31,538 seats in the first half of calendar year 2021, up from about 87% of seats taken during the same period a year ago. Edelweiss Securities Ltd analyst Aditya Narayan said commercial real estate projects by the top eight players in India indicate that they are adding 7-8 million sq ft of space in just one year by the co-working industry.
As of June 30, 2021, the total flexible workspace stock in India was 30.7 million sq ft. Given the continuing effects of Covid-19, Colliers anticipates leasing about 3 million square feet (0.27 million square meters) of flexible workspaces in 2021. As occupants and their employees return to formal workspaces, demand for well-located is expected to increase, the report said, adding that high quality and efficient flexible workspaces will result in 4.7% of total commercial office stock by 2022. The share is in their possession.
“With the pandemic-induced volatility wreaking havoc, many start-ups as well as large enterprises are evaluating flexible workspaces to meet their space needs over the next few years. We believe the segment The combination of flexibility and capital protection provided by the company is especially useful in an uncertain world. Driven by the need to defer capex and try a hub-and-spoke model, many corporates are considering flexible workspaces. As a result, flexible Space operators are likely to see good demand going forward,” Narayan said.
A hybrid office has some employees who work in the office, while others work from home. Some employees will remain in the office to do their jobs, while some prefer to work in the office, and others may still need to go to the office on occasion. Employees can work in a variety of locations, including corporate offices, coworking spaces, public spaces, and from home.
According to a report titled ‘The Future is Flex’, property consultant CBRE South Asia has estimated that India’s flexible office space will expand by 10-15% year-on-year, and Tier 1 and 2 cities during the next three years. Will run this flexible space. industry.
With the uncertainties induced by the pandemic, many large corporates are looking to exit long-term leases, which is why companies like 3M. welspun and starbucks has shifted its Indian headquarters to work together space to optimize cost. A co-working space does not allow companies to incur huge capital expenditures for commercial real estate.
Colliers International expects flexible workspace operators to lease 3 million square feet of space in the top six Indian cities this year.
“Initially, the growth of co-working spaces was limited to the top 6 cities. However, after the pandemic, operators are expanding to Tier-II cities. We are now seeing large enterprises setting up satellites and sales offices in smaller cities. Furthermore, hyper-local delivery players are taking up smaller office space in many locations as they expand into smaller cities. We expect this trend to continue and demand for e-commerce and fintech over the next two years. Many of these existing centers are currently operating at over 70% occupancy levels,” said Ramesh Nair, chief executive officer, India and managing director, market development, Asia, Colliers.
However, while many corporates were initially excited about work from home, it is no longer the most preferred mode of work due to employee burnout, organization culture and team bonding concerns. Employees faced problems regarding collaboration, mentorship, negotiation and personal attention. Loneliness and mental health became major risks. A recent study by LinkedIn revealed that a majority 7 out of 10 young Indian professions feel that remote working as a whole will negatively impact career growth. 55% of professionals feel handicapped by a lack of adequate opportunities for learning, due to “less face-time with bosses and leaders” and “learning from peers remotely” (34%).
Nearly half of India’s workforce is willing to return to the cubicle, as they view the workplace as more conducive to productive work, while 9 out of 10 (86%) respondents believe that the hybrid work model is positive for work- Life affects balance.
By the beginning of 2022, Wipro Adopting a hybrid model and recalling employees. Marico, one of India’s leading FMCG companies, is also planning to introduce the hybrid model. Google is also adopting a “hybrid workplace, where about 60 percent of employees will be together at the office a few days each week, another 20 percent will work in different office locations, and the remaining 20 percent will work from home. . Employees have “work”. anywhere from a week”.
NS microsoft work trends index Hybrid paradox revealed: People want flexibility to work from anywhere, but they crave more personal connections together. “Companies will need to actively build new habits and ensure that no matter where employees work, they feel that they belong, that they are being engaged in the conversation, and That managers are supportive of their diverse needs and work styles. This is especially true of underrepresented groups in the entire American workforce, who feel less involved than others.”
The second half of 2021 is already seeing a change in the way co-working companies work, and new-age commercial spaces need to focus on = personal collaboration and flexibility in the office. The key is to create floor plans that are open, but also offer more of an enclosed space.
According to Cushman & Wakefield, leasing of flexible workspaces by corporates grew 73% to 31,538 seats in the first half of calendar year 2021, up from about 87% of seats taken during the same period a year ago. Edelweiss Securities Ltd analyst Aditya Narayan said commercial real estate projects by the top eight players in India indicate that they are adding 7-8 million sq ft of space in just one year by the co-working industry.
As of June 30, 2021, the total flexible workspace stock in India was 30.7 million sq ft. Given the continuing effects of Covid-19, Colliers anticipates leasing about 3 million square feet (0.27 million square meters) of flexible workspaces in 2021. As occupants and their employees return to formal workspaces, demand for well-located is expected to increase, the report said, adding that high quality and efficient flexible workspaces will result in 4.7% of total commercial office stock by 2022. The share is in their possession.
“With the pandemic-induced volatility wreaking havoc, many start-ups as well as large enterprises are evaluating flexible workspaces to meet their space needs over the next few years. We believe the segment The combination of flexibility and capital protection provided by the company is especially useful in an uncertain world. Driven by the need to defer capex and try a hub-and-spoke model, many corporates are considering flexible workspaces. As a result, flexible Space operators are likely to see good demand going forward,” Narayan said.
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