It so happened that India’s central business districts (CBs) were already losing their sheen to their new peers in the suburbs. Better affordability, swanky new offices laced with high-end technological support and increasing connectivity make the peripheral business districts (PBS) a hard-to-beat competitor for the country’s age-old CBDs with their jaded buildings. Then came the pandemic, making remote working the mainstay and online shopping the only way to be. This made the going incredibly tough for commercial spaces in general and the CBDs in particular. Its onslaught has also forced CBDs towards realigning themselves with new realities to stay relevant.
Have CBDs become less relevant post pandemic?
The arrival of worthy competitors notwithstanding, occupancy levels in most central business districts remain robust because of the various advantages they offer. They are all sitting right in the heart of the cities, and it is probably an unfair advantage that they have over their new rivals. The draw of the centre for business is, in fact, one of the biggest reasons why vacancy levels in CBS like Nariman Point and Connaught Place remain low.
A lot of this has to do with their overwhelming brand value as business destinations and their social perception with huge recall value. If a company has its offices in Nariman Point or Connaught Place, for instance, it is a clear indication of them having arrived. Because of the very nature of their business (they cater to the rich and influential population living in the upscale localities around the city centre), high-end brands prefer to stay centred. Client profile and preferences, risk and returns and logistical requirements are some of the other factors that determine the choice between CBDs and PBDs for a brand.
Traditionally the hub of transport networks, CBDs also enjoy unparalleled connectivity web— it may take a while before PBDs are able to get a similar level of connectivity. They also serve as the conventional central social centres, too— the epicenter of all socio-cultural activities and continue to maintain their stronghold on the same.
Succinctly put, CBDs remain relevant despite the recent challenges. Since they no more enjoy their dominant position as centres of business activity, desired changes must be made in CBD redevelopment plans to strengthen in the wake of intensifying competition.
What is the way forward?
As survival gets tougher for in the wake of new challenges— surveys show several buy-and-sell activities have gone completely online — the future of business districts lies in replicating the best from their peers. India’s established CBDs can learn valuable lessons from the fast-growing peripheral business district despite space limitations.
While the age-old buildings could do with redevelopment, mere physical restoration of space will not be enough. Making the office space more robust with technological intervention would be key to staying relevant. Aside from physical intervention to create better parking and traffic management, technological intervention is also required to optimize the limited space.
The same is also true for PBDs. PBDs will thrive on the fact that one CBD is not enough for ever-expanding cities where large parts of population live in the suburbs. In terms of space availability and swanky new developments, they score big, too.
However, connectivity and branding are the two areas where PBDs would have to improve themselves. They don’t yet fit the traditional definition of a CBD in terms of walkability, mixed-use, and green transportation. As they gradually develop themselves into social and cultural centres, they would also see their social perception improve.
In a country that is set to become the world’s most populous country soon, there is enough scope for CBDs and their suburban counterparts to thrive. The ultimate goal should be for one model to learn from the other and be as wholesome as they can.