The Corporate real estate services landscape in India is undergoing a massive transformation, given the changing economy, increasing number of start-ups, and reverse migration along with the fresh influx of global talent. Research indicates that India will be Asia’s next big thing, which is promoting Foreign direct investments in terms of global companies opening their offices in multiple cities in India, and larger corporates from India expanding into tier 2 cities. This has resulted in extensive demand for different types of office spaces and it is predicted to grow at an unprecedented rate in Metro cities such as Delhi, Gurgaon, Bengaluru, Mumbai, etc, and also Tier 2 cities which are becoming new IT hubs such as Indore, Nagpur, Pune, etc. With this massive growth in the availability of office spaces, it is imperative for corporates to know what are the types of office spaces available, and how can they find the right space that accommodates the needs of the business and personnel of the company, literally and figuratively.
Types Of Office Spaces
If you are looking for office space, there are two key classifications to consider, i.e., commercial space and interior office space.
Type A Buildings: These types of office spaces are commercial buildings that are the largest in terms of space and are usually located in central business districts or urban commercial zones. In terms of construction, the quality of materials and design in these buildings are of the highest quality. Given their location and size, they are usually owned by parties with a good reputation, and therefore, the buildings are usually the most expensive type in the large pool of office spaces. They are the first the choice for large corporations and conglomerates, and the surge of startups to operate in compliance, as well as owners of these buildings, also tend to give first preference to known corporations with stable financial backing and growth projection.
Type B Buildings: These types of office space buildings are usually located in the city’s prime locations but might not have the array of services and amenities that type A buildings offer. Hence, they tend to be slightly more economical, thus making these buildings the first choice for smaller companies and fledging start-ups. Type B building offers location benefits in terms of metro connectivity and other public transport options, while also not being too heavy on pockets for the companies.
Type C Buildings: These buildings offer very limited management services and amenities, and just offer basic minimums in terms of maintenance. These types of office space options tend to be a lot more affordable but given that most companies prefer to pay a little extra for the services and facilities type A and type B buildings offer, this type of office space is eventually dying out. Most of the owners of such buildings are converting these buildings into residential properties, thus making it a very good option for employees working at type A and type B commercial spaces.
Traditional office space: These types of office spaces are the ones that you normally see across different industry sectors, and it primarily has an employee bullpen, a reception, conference rooms for meetings, cabins for higher management, a pantry, and shared spaces for employees to interact with one another.
These office spaces are usually preferred by law firms, consulting companies, IT companies, and other finance companies. Usual lease terms for such offices range from 3-5 years, thus making it a safe choice for corporations. However, given the rigid structure of such spaces, companies that are opting for a more fluid and vibrant work atmosphere, tend to opt out because of the dull working conditions such spacesoffer.
Creative office space: As more and more companies are becoming flat hierarchical, there is an increased demand for creative office spaces, which are aesthetically more appealing. More and more companies are looking for these types of office spaces, as aesthetics have directly been linked to better work productivity and happiness index of employees. These spaces offer huge flexibility in terms of layout and décor to companies to move things around based on their requirements. In terms of interiors, these spaces usually have Carpet flooring, high ceilings, and huge glass windows to allow natural light, and usually don’t have a lot of cabins, cubicles, and private offices.
These spaces drive collaboration from their aesthetical essence, thus driving better team working opportunities and better employee-management relationships. Such spaces have become the first choice for creative companies such as advertising and marketing agencies, start-ups, and tech companies, where collaboration and communication are imperative.
Contiguous office space: For companies with a larger workforce and several departments, this option becomes extremely viable as it provides several floors in the same building to a single company. These types of office spaces are designed in a way that aesthetically the floors look cohesive and are easily accessible. Many advertising agencies opt for such spaces given there are several departments such as client servicing, creative, copywriting, PR, etc.
This allows different departments to work in their own space and cultural requirements, at the same time offering enough room for different departments to stay in touch. Such types of office spaces are a good choice for growing companies and for companies with different departments that need proper separation to bring out maximum productivity.
Executive office space: Companies looking for luxurious office spaces to lure in clients opt for such spaces, where a single company rents out an entire floor of an opulent building. These types of office spaces usually offer a big reception, a lounge (waiting area), and capacious conference rooms and break rooms. As one walks through the reception and lounge to the conference rooms, these spaces tend to give a lavish passage to the clients.
These spaces are usually offered in a sublet model, short-term lease, or month-by-month basis. They are usually expensive, thus a lot of companies tend to pick these places up when they are looking into bringing new clients in or during the peak business seasons.
It can be concluded from the above that these types of office spaces have seen a huge shift from conventional standards, and are now designed keeping in mind not just the business owners but also the employees of the company. New office spaces aim to provide comfort and aesthetic factors to employees to ensure employee satisfaction, thus promoting productivity and efficiency. It is apparent that no office space is a single solution for all demands, therefore it is essential to look into several factors, and assess the pros and cons of each type of classification of the type of commercial spaces and office design to determine the best fit for your company or you can get advise from any other real estate consultants for more information.