The COVID-19 outbreak gave an opportunity to the office space operators to rethink their offerings, products and strategies. The corporate organizations around the world are progressively seeking avenues for cost optimization and better control over peripheral expenditure. In a time when the managed office sector is continuously evolving and changing the way we perceive workspaces , Skootr Offices came up with a new venture Skootr FinSave, a financial service model offering 360 degree leasing solutions to large and mid-sized corporations.
The concept of ‘Skootr FinSave’ was developed after identifying the growing demand for financial services in the office segment. Financing fitout provides businesses the opportunity to upgrade workspace and allocate more finances to invest in the primary business activities. This segment is carving a niche in the commercial real estate sector by offering various benefits for the companies.
Q: What is a managed office space and could you shed some light about what are their advantages over the conventional and traditional models of office spaces in India?
A managed office is a 360-degree outsourced workspace solution. From finding the perfect location, to building a fully customized office space and taking care of all the nitty-gritty aspects of office management; managed office space is breaking the conventional norms of building business infrastructure. By minimizing the accumulated costs of Capital Expenditure, low costs, and peripheral costs, managed office operators foster a mutually beneficial relationship with enterprises where they co-create value with them as their outsourced partner.
With the new normal settling in and organisations re-evaluating their office original space requirements, it has been observed that a Managed office is set to gain greater significance with its holistic package of services. A few benefits over conventional models are:
Cost Effectiveness:
Managed office provides seamless way to scale up or down the office space while reducing down on heavy rentals, long-term leases and saving overhead costs on administration and maintenance. Not only this, office space, operational expenses, and all bills are covered by one single routine payment which is completely hassle-free, and this works out to be more cost-effective.
Scalability:
Enterprises have the authority to be what they want to be – expand or consolidate. The managed offices are fully customized to reflect the ethos and pathos of the company. Scalability as an option is what organizations would not be able to get in a conventional office setup.
Better Time Management:
Managed office spaces offer all the advantages of a fanatical office space while helping the workforce manage time more effectively. With flexibility in timings and facilities, they get the freedom to focus more on your core business than the office operations.
Customized Office Design:
Office Design is about creating a balance between company culture and employee satisfaction. Employee well-being and morale is significant for the overall success of the corporate. Merely by offering employees an areas to refresh and taking their well-being into consideration, elusive changes can be made to enhance the physical environment at the workspace. Choosing to operate from managed office space allows to customize the office interiors as per the company’s requirements.
Premium Location:
Managed offices are strategically located in selected business centers and commercial areas which offer the benefit of connectivity, networking and competitive advantage.
Q: The managed office sector in India is still to recognise its complete potential. What are some of the biggest challenges the industry faces today? How do you see it changing?
Managed workspaces are the latest trend within the larger co-working ambit that has reimagined what the segment has to offer. Armed with 360-degree services and an opportunity for brands to establish a unique identity while working with other organizations, the business model works on tailor-made office solution for modern professionals. Hence, it is expected that budding entrepreneurs, mid to large organizations will organically soar towards agile workspaces even with minimal marketing efforts.
In India, managed office space is relatively a new concept, therefore, target audiences need to be provided with ample information to allow them to distinguish between a Co-working and Managed office space. This distinction needs to be put across in the simplest, most engaging manner through different tools and medium such as blogs, social media forums, case studies, informative videos, newsletters and relevant content. Additionally, direct sales and broker partner strategy, if utilized efficiently will help cover the target audience and this also helps in closing sales pitch with the fence sitters.
Q: Explain the role of Skootr FinSave. Why Skootr had to launch a new venture to engage in the fitout lease services?
While Skootr Global has been a dominant player in the Managed Office space, the concept of ‘Skootr FinSave’ was developed after identifying the growing demand for financial services in the office segment to cater to one of the most important aspects of office industry in current times: CAPEX & Cost Optimisation.
It offers fitout as a service that allows numerous benefits such as tax benefits, leasing office fitout offers lucrative tax benefits as payments are 100% tax-deductible. No large upfront cost means capital is retained with the business, maintaining working capital that can be invested into other revenue-generating operations. Ability to offer dry leasing (funding) & wet leasing and outsource asset salvage & disposal related risk is also managed by us.
Before the second wave of Covid, the market witnessed an increase of 5 % in the first quarter of 2021 compared to the Q4 of 2020. The requirement is now more driven in the form of flexible office spaces like Managed, Co-working or Serviced office spaces primarily because companies would not like to spend on the CapEx and secondly, they would want to enjoy the flexibility in these uncertain times.
Q: How does Skootr aid in providing cost-effectiveness and scalability for its clients?
The Covid-19 outbreak gave an opportunity to the office space players to rethink their products, offerings, and strategies. The corporate real estate market in India is evolving and therefore the dynamics of the industry are changing rapidly post pandemic. Corporate occupiers are now re-evaluating their investment in fixed real estate assets. One of the ways of doing so is exploring flexible and cost-efficient workplace solutions while complying with today’s social and safety needs.
Cost Effectiveness:
Managed office provide seamless way to scale up or down the office space while reducing down on heavy rentals. Not only this, office space, operational expenses, and all bills are covered by one single routine payment which is completely hassle-free, and this works out to be more cost-effective. Organizations can utilize their capital funds for expansion and innovation instead of keeping it jammed in real estate.
Scalability:
As the impact on the enterprises continues to change due to the evolving situation of COVID-19, workspace requirements are also changing. The managed offices are fully customized to reflect the ethos and pathos of the company. Also, it help enterprises to inculcate their company culture and values in their office space to create a sense of belongingness among the employees.
Q: Could you share some insights into the processes followed by Skootr for the delivery of its project?
Skootr provides workspaces which are equipped with cutting-edge technology, efficient seating arrangements, spacious lounge areas, IT support, administration and maintenance services. Additionally, we customize the space according to the client’s requirements. The entire process is completed and delivered to the client within the period of 60 days.
Q: With the pandemic having disrupted the complete CRE economy of India, how can brands like Skootr aid in its revival?
With the COVID-19 outbreak, employees’ priorities have changed to health, safety, and hygiene. This has led to occupiers shifting their base from Grade B assets to Grade A office space. With Skootr providing space as a service’ wherein enterprises get the benefits of a hassle-free, fully customized, flexible office space with a negligible CapEx while meeting all compliance requirements and an additional focus on safety, sanitisation and contactless technology suiting the occupier and the employees’ requirements.
Moreover, the concept of ‘Skootr FinSave’ was developed after identifying the growing demand for financial services in the office segment. In the current real estate scenario, enterprises want to create a bespoke and productive work environment for their employees to thrive in without dealing with increased upfront costs. Skootr FinSave lets consumers enjoy a number of benefits such as tax benefits, faster upgrades, releasing capital and ability to offer dry leasing (funding) & wet Leasing while minimizing their capital risks.
Q: What is the future of the managed office market in the country? How is Skootr aligning itself with the changing market dynamics?
Concept of managed office is transforming the face of the office sector and enabling enterprises with necessary tools to focus on their core business activities and drive growth and development without worrying about office management, rigid lease structures and capital expenditures. According to a JLL report, 30% of all office space will be consumed by managed and flexible office spaces by 2030.
Occupiers are encouraged by flexible leases and low upfront capital expenditure, making this as a lucrative option for a workspace. Needless to say, the concept of managed office space will revolutionize the way organizations perceived workspaces.
While enterprises continue to navigate shift to office models due to the pandemic, we believe the need for pre-built offices, lease flexibility, advanced technology and superior infrastructure will continue to increase. With the COVID-19 outbreak, employees’ priorities have changed to health, safety, and hygiene. This has led to occupiers shifting their base from Grade B assets to Grade A office space which will enable to meet all compliance requirements and an additional focus on safety, sanitisation and contactless technology suiting the occupier and therefore the employees’ requirements. Manage office spaces such as Skootr, have a lot to offer and can be an added edge that an organization needs so you can focus on your core business function and improve operational efficiency.