THE HYBRID WORK MODEL Transforming the commercial real estate

Our re-emergence from the second wave of the pandemic has reshaped businesses, economies, and governments as per the changing world. The rules of the past have been re-written for the present and future. Businesses are now focused on the need for state-of-the-art technology to improve efficiency, maximise consumer satisfaction and tap the right audience effectively and faster. Its expansions and revaluations have increased the demand for an advanced format of office spaces that provide contractual flexibility, freedom of growing and relocating. The newly built commercial properties with all requisites to complement the hybrid work model are seeing an exponential demand from IT giants, corporates, and financial service providers.

Technology in driver's seat: Opportunity for property developers

Occupancy in offices is improving due to the factors like data security, firewall, administration, etc. This has led commercial real estate developers to make a paradigm shift towards providing smarter offerings. With a forward-thinking approach, the new workspaces are being designed with a larger voice-command-based boardroom, storage units, automated visitor management system, and digital flipcharts in meeting rooms to allow connectivity with other like-minded businesses and enhance the overall productivity.

Further, to attract new tenants, property developers are ensuring the health authority's guidelines remain intact to keep the workspace safer and healthier. They are working towards facilities like automated doors, voice-activated elevators, retina scanners, sensor-activated disinfectants, comprehensive sanitation protocols, and proper ventilation channels that make the hybrid work model investment-worthy.

Optimizing real estate costs

The new working model has also enabled the workspace service providers to come up with concepts like shared office spaces, a cost-efficient pathway to otherwise inaccessible prime locations with less capital and operational expenditure. It allows businesses to reduce unused space and gain optimum financial benefits. This could be done by renting parts of the office to other entities, lowering the overall costs of property maintenance by decreasing energy and media usages, shifting to a smaller space, etc.  A recent study has suggested that with the hybrid work model businesses can maximise their profits up to 30 percent. Given the norms accelerated by the pandemic, this work model is catering to the needs of contemporary times on a large scale and has become the new trend. A sustainable solution for the present and the future, this hybrid work model is going to define the post-pandemic workplace.

A promising future

With the growing culture of businesses opting for smarter offerings, property developers are attracting new owners and renters. For instance, in Mumbai, the hybrid work model and co-working revolution in the suburban office areas and CBDs like Santacruz, Andheri, and Bandra-Kurla Complex have started witnessing growth.

With technology adaption, favourable demographics, rising income, and increasing urbanisation, the long-term outlook of the commercial real estate industry is promising. The renewed demand for blended offering with a hybrid work model is rewarding, the commercial real estate sector is changing itself as per the emerging trends and demands of the post-pandemic workforce.

As the commercial real estate space is expected to grow in the coming years, the market is already gaining momentum in the new changing landscape. It is paramount to understand that whatever may be the model, whether it is working from home, going to the office or a mix of both or a co-working space, the commercial real estate establishment will continue to exist and will welcome those who can smoothly pass through a transition.

- Aditya Kedia

Managing Director, Transcon Developers

Hits: 0