Chennai, one of the oldest Indian modern cities, continues to play a pivotal role as a prime commercial state of the country even today. As a result, the city’s CRE has undergone innumerable evolutions to meet the evolving occupier needs. Through a thorough understanding of occupier shifts, adapting to the dynamic business environment, and innovating its offerings, Chennai’s CRE has been able to successfully establish itself as one of the top 7 Indian CRE markets today. In this episode, we relook at the journey of Chennai’s CRE and uncover factors and strategies that helped it throughout the journey

Key Takeaways:

  • Since 2017, the outlook toward flex workspaces has shifted drastically from being suitable for customer-facing business operations only to being suitable for core business operations as well. Data from 2018 suggests India’s flex space market was just 5 Mn sq. ft. which is 33 Mn sq. ft. currently and is expected to reach 50-53 Mn sq. ft. by 2024.
  • Core + Flex is the latest trend among occupiers of all industries and scales in Chennai. It is certain that currently, flex workspaces hold a 20-25% share of Chennai’s total office occupancy. A growing acceptance of flex spaces by high-tech companies, start-ups, large corporates, FinTech, and Pharmaceuticals is leading this change. Simultaneously, enterprise solutions are also a big hit among occupiers of Chennai’s CRE.
  • Given real estate cost is one of the most important costs for any organization besides talent cost and the lingering resistance among the workforce to return to offices, businesses are exploring flex spaces as part of their long-term workplace portfolio strategy. As a result, tier-2 and tier-3 cities are experiencing a rise in flex space providers to enable employees with a choice to work from offices near their homes, if they’re hesitant to move to tier-1 cities and work from offices.
  • Post-pandemic, the rising concerns about employee well-being and work-life balance, has led coworking players to emphasize delivering workspaces that help businesses improve the quality of work experience for their employees. By creating workspaces that are tech-enabled, safe, hygienic, and ESG-friendly, CRE players are understanding occupier sentiments and meeting their demands successfully.

Our Speakers for the session:

Kanchana Krishnan

Managing Director, Colliers

Sukirti Pandey

VP- Marketing, Awfis