• +91 8446500500
  • This email address is being protected from spambots. You need JavaScript enabled to view it.

Blog

Arun Developers, Pune

Arun Park, Opp. Aditya Birla Hospital,
Chinchwad, Pune - 411033

Coworking to gain as global firms expand: Lee Elliott

Coworking to gain as global firms expand: Lee Elliott

Lee Elliott, research head (occupier services), Knight Frank, said better productivity and lower attrition is being achieved through office space. Knight Frank pegs real estate at 15% and people at 55% of total operational costs for any company. "...BENGALURU: India is one the most attractive destinations for large global corporations, a senior executive at a global consultancy said, associated as it is with high value and critical business functions.

Lee Elliott, research head (occupier services), Knight Frank, said better productivity and lower attrition is being achieved through office space. Knight Frank pegs real estate at 15% and people at 55% of total operational costs for any company. "The focus is clearly on retention. You can't push more and more people into the same space," said Elliott. This is expected to lead to increasing demand for flexible office spaces that will expand at least sixfold to account for 35% of all office space globally in the next three years, up from just about 5% at present.

With India expected to see five generations of workforce over the next five to 10 years, "convergence between coworking operators and conventional landlords will accelerate. Cost of replacing staff is much more than real estate," said Elliott. "Coworking creates vibrancy and footfall."

Companies are looking at 50% conventional space on a 10-plus years lease. Separately, 30% of space will be on the flexible model and 20% in a coworking environment, as per Knight Frank. "This is mainly due to large companies increasingly planning flexible and serviced spaces that offer freedom to expand and contract quickly according to market conditions, " said Elliott.

The IT/ITes sector contributed 35%of the total demand in the first half of 2019.
PMRDA floats railway ring project to connect busin...
India's low-cost housing space is increasingly get...
© 2019 Arun Developers. All Rights Reserved.