With workplace strategy gaining traction across markets, leveraging technology both to revise corporate strategies providing space as a service and leveraging technology to raise corporate strategies and to enhance workplace design has propelled huge step change in office fit-out construction. The modern workforce sees the office not only as a place of work but a place to connect, collaborate and be inspired. The demand for the smart office is also affecting how landlords define a desirable building. The smart office needs to be supported by the infrastructure and flexibility of a smart building.
A digitally enabled office is no longer the domain of tech giants, but of businesses across all sectors. Companies must accept that what was once optional is now inevitable. Office space is now a service, made to fit business strategies where productivity is synonymous with technology-enabled collaboration, and employees demand modern conveniences and seamless technology integration so they can focus on the tasks at hand. Driving this technology investment shift is the demand for a unified visual display and communication platform.
To collaborate, people need places to connect. While this is a fundamental need and employees are demanding more from their workplace; they expect high-speed Wi-fi, wireless charging, online room booking and environmental controls among others. Consequently, companies have to evolve meet such demands in order to attract and retain talent. Accordingly, 70% of companies plan to increase investment in real estate technology within the next three years, and 30% see smart building technology as a factor in choosing a building.
Investment in workplace technology has been growing steadily for several years until, unexpectedly, in 2018, there was a double in spend. This was attributed to a combination of increased adoption and workplace strategy implementation, leading to collaborative environments fully supported by technology.
We are transitioning to a new office experience that demands an evolution of the standard commercial building and transformation of our physical space. The influence of smart office on companies and the considerations needed to attract and retain top talent by providing them a productivity-enabling environment involves office fit-out cost data. This data helps in assessing the cost involved for designing workplaces with capital planning as well as benchmarking across the region and worldwide using the APAC and Global index. This evaluation, additionally, provides the leasing and facilities management team benchmarks as well the net present life cycle costing that reflect holistic office investment costs.
India cost analysis:
Mumbai: Several new supply additions were witnessed in Navi Mumbai and Western Suburbs. Space take-up continue to remain strong primarily driven by tech companies, BFSI and co-working space operators. Increase in rental values observed in BKC, Western Suburbs 2 and Navi Mumbai. Developers are moving towards smarter space solutions by incorporating technology from workplace solutions to facilities management
Hyderabad – Absorption of space observed in IT developments along IT Corridor II with additional supply in the pipeline. Key drivers include tech companies, flexible space operators and BFSI firms. Vacancy rates maintained tight while rental rates continued to increase
Pune – Tech firms and BFSI companies continued to dominate space take-up. This is followed closely by flexible space operators
Kolkata – Negligible supply and increased demand continued to drive rental rates up
NCR – Noida and Gurgaon contributed to the major supply addition in the region with tech companies dominating the leasing activity followed by e-commerce, engineering and manufacturing sectors along with flexible space operators
Bangalore – Flexible space operators dominated leasing activity, followed by tech and pharmaceuticals companies. Limited availability of quality space led to an increase in rental values across NBD, EBD, ORR & PBD
Chennai – Supply addition witnessed in CBD and Off CBD with an increase in leasing activity in OMR Zone 3 & Ambattur due to sustained occupier interest. Key space absorption driven by tech companies followed by flexible space operators, as well as engineering and manufacturing firms.
Strategies to achieve business goals are being rewritten for the future. The goals of productivity and profitability remain; however, the journey and the platform to achieve these are changing. The commercial office industry is recognizing technology as a core requirement of an attractive, collaborative work environment.
Due to the criticality of integrated technologies and smart workplaces, there is an increasing demand for project management teams with the right technical skillset to get the brief, budget, design and implementation right. This is important when a “result-oriented workforce” demands superior knowledge-based work environments that improve productivity and allow connection, collaboration and inspiration. Landlords are also recognizing such effects and are looking to develop desirable assets. Demands have evolved from staying in sustainable and green buildings to providing infrastructure to accommodating smart offices. There is a transitioning to a new office experience that demands an evolution of the standard commercial building and transformation of our physical space.