Commercial properties are the fundamental pillars of real estate in India. It might be far more important than residential properties. Due to demonetization and the Covid-19 pandemic, the real estate business has been gravely affected. Since the second wave, however, the real estate industry has taken its pace once again. The economic renewal has put things back on track. The trend of commercial real estate has still taken up a new garb.
In a world where work-from-home is the new normal, commercial spaces are bound to transform. The vast digitization and advancement in technology has rendered to newer facilities in these properties. Safety and hygiene are the key parameters that the revamped commercial real estate ensures. Buyers can now engage in virtual property tours before settling for their dream investments.
Emergence of the Hub and Spoke Model
Companies are now on the hunt for flex spaces for the change in the pattern of working style. These are basically work locations closer to the residences of the employees. This new arrangement has developed after the recent work from home and hybrid working pattern. Now companies don’t take long-term leases. They rather partner with co-working agents for any workspace need. In these flex spaces, companies rent cabinets or chairs for a specific period of time. This saves both their expenditure on rent and on maintenance.
Multiple employees from various companies thus, work under the same roof, enhancing professionalism and productivity. The Awfis Workspace Survey 2021 reveals how the hub and spoke model is gaining precedence. Over 58% of the respondents are willing to work in the nearest office branch or a co-working space arranged by the employer. Developers and flex workspace owners are now inclined to capture the tier II and tier III cities.
Many employees have moved back to their hometowns during the evolution of the work-from-home facility. Hence, there has been a high demand for co-working spaces in these smaller cities. The overpopulation of the tier I cities also leads to the exploration of lesser known localities. The hub and spoke model has definitely opened the doors for a new market. It is the new black in the real estate business.
Embellished with advanced technology
Enormous digitization and the need to create a touch-free and safe environment has led to the adoption of various sensory devices in these co-working spaces. These include automated attendance devices and voice-controlled features. Artificial Intelligence is becoming the prevalent tool in the commercial realm. AI and Cloud-based technology is used for various purposes like, to keep a track record of tenant profiles, their applications, inspection requests and so on.
Hence, the new commercial properties are equipped with all modern means keeping in mind the employees’ safety and the large-scale digitization. With time there will emerge other ways of coping with the pandemic. These co-working spaces will have sensor-activated disinfectants, retina entry scanners and many other devices installed in the premises. These upgraded amenities and facilities show the rebirth of a newer version of commercial property in India.