Second half of 2021 to bring new opportunities for the commercial real estate market: Experts

19 July 2021

Second half of 2021 to bring new opportunities for the commercial real estate market: Experts

  • Economic Times

The commercial real estate market will be expecting growth and getting ready for a post pandemic recovery with the roll out of vaccines in India,according to experts.

In the webinar by home-grown flex workspace provider, Awfis, on the strategies that needs to be adopted by the CRE market to successfully navigate the second wave of the pandemic, experts said that traditional sources of capital – banks and NBFCs, will be constrained at least for the next 24-36 months.

From an investor’s perspective, they will think through before they deploy capital to consider the contingencies, they have faced in the past 12 months.

“Last year, the pandemic changed the CRE sector in fundamental ways that no
one predicted. With the pace of improvement driven by the availability
and effectiveness of a vaccine in 2021, the long-term outlook for commercial
real estate looks positive in many facets.

With the CRE industry likely to recover in the coming months, 2021 foresees a strong partnership between occupiers and developers,” said Amit Ramani, CEO
& Founder, Aw@s and Vice President, Indian Workspace Association.
Sanjay Dutt MD & CEO, Tata Realty and Tata Housing said that they have seen
significant changes from an occupier’s point of view.
“Occupiers are exiting leases, which do not meet the new benchmarks of
environment, health, safety and wellness (EHSW) standards and willing to pay premium and renew & consolidate where they do. Majority of occupiers have deliberated on the work from home vs work from office options and a lot of emphasis has been on building the right infrastructure to make sure one inculcates the culture of the organization in the workplace for the people since they want them to come to the office. They are expected to
repurpose the office,” said Dutt.

Experts believe that the latter half of 2021 brings with it a lot of new opportunities for the CRE market with respect to the strategies and planning that is required for the evolving nature of the industry.

“For the short to medium term outlook, the developers must listen to their clients and synchronize their supply to real, tangible demand and redesign/repurpose their products for what is the new normal (post pandemic). Additionally, developers also need to focus on stabilizing rather than chasing growth and be disciplined about the capital they raise and focus on executing to deliver as committed,” said Arpito Mukerji, Managing Director,
Apollo Global Management.

Going ahead, occupier’s health and wellbeing will be crucial to future CRE strategy and investments. Developers need to reinvent their strategies accordingly, although the response to restructuring their portfolios varies from developer to developer.
“The entire focus currently is to stand by our customers and help them tackle the
ongoing crisis. In the long run, developers will need to recognise the importance of digital technology across the value chain, right from investments to design / construction and to operations. There will need to be tremendous focus on green power, energy efficiency, cost optimisation, improving customer experience and health & wellness using PropTech –
developers who will do this will stand out in the market,” said Vinamra Srivastava, CEO, Business Parks, CapitaLand India.

The growing demand for more sustainable, smart, and flexible options among occupiers will have an impact on the demand for commercial real estate, as corporates consider a hybrid work culture to reduce excess space from their portfolios.
“Certain developers have taken the decision that would like to offload capital intensive portfolios from their balance sheet and redeploy the capital into their core development business. Most asset owners are focused on rapidly upgrading asset level
technology, processes, and standards,” said Amit Diwan, MD & Country Head,
Hines India.

According to Vinod Rohira, MD & CEO, CRE & REIT, K. Raheja Corp, REITS is a
fantastic opportunity for India and right now it is in the stage of infancy.
“If you look at the developed markets of the world, they are way ahead of us and
there is more to learn from a governance, compliance strategy, development, and asset management level. If we can get this right, it will be a massive opportunity for India, going
forward,” Rohira said.

This story appeared in the May 31  2021 issue of  The Economic Times and was originally published at: https://economictimes.indiatimes.com/industry/services/property-/-cstruction/second-half-of-2021-to-bring-new-opportunities-for-the-commercial-real-estate-market-experts/articleshow/83108066.cms?from=mdr

 

Awfis leases over 11k sq ft workspace in Kolkata to 3 large corporates in 6 months

13 October 2022

Awfis leases over 11k sq ft workspace in Kolkata to 3 large corporates in 6 months

  • Posted by Awfis Editorial

Awfis, India’s largest network of coworking spaces has leased over one lakh sq. ft. workspace in Kolkata to 3 large corporates in last 6 months alone.

In line with this partnership, Grant Thornton has taken customized set up in Awfis’ Eco Centre (Awfis Gold centre) at Acropolis Mall in Kolkata. Along with Grant Thornton, Awfis has also partnered with Teleperformance, a global digital integrated business service provider, and Conneqt, a leading digital IT and BPM services provider for over 1000 seats at Godrej Waterside and Technopolis centres respectively. In the past, Awfis has also partnered with electronics giant Samsung for over 500 seats in Kolkata.

Flex players are now taking up spaces in malls and hotels to expand their presence as startups, SMESs and enterprises warm up to the idea of shared facilities over owned premises. Given the above, Awfis is taking the collaborative workspace model to newer spaces like hotels and malls to meet the hybrid workspace demand, which has skyrocketed post-pandemic.

The Awfis environment provides a unique amalgamation of different workstyles while providing the company’s employees with amenities and benefits such as meeting rooms, a well-designed collaboration area, a multi-cuisine restaurant, concierge service along with full hygiene and safety measures.

“We are delighted to have a leading establishment like Grant Thornton as a key client. This valuable partnership is a game-changer for the industry where large corporates have realised the benefits of flexible working and are increasingly shifting from a centralized conventional office to decentralized and distributed flex offices for their workforce,” said Amit Ramani, Founder & CEO, Awfis.

Sumit Lakhani, Deputy CEO, Awfis added, “The trend of using flexible spaces in commercial real estate portfolios of large organizations is witnessing unprecedented growth and will become more prominent in the coming future. The flex space take up from large corporates in Kolkata is a clear reflection of the surge in demand that we are seeing pan India across all metros and tier 2 markets as well. Flex players are now being seen as valuable partners in setting up highly customized, efficient and agile workspaces by companies of all sizes.” he added.

Sanjay Mehta, Executive Director- Workplace Enablement, Grant Thornton Bharat said, “The vibrant tech-enabled environment, provides the right mix of a corporate office ambience combined with new-age elements for collaborative engagements and enhanced innovation. This will help improve our people and client experience.”

Currently, Awfis has 9 centres in Kolkata spread across premier and sought-after locations that include Acropolis Mall, Chowringhee road, Salt Lake, IT Hub in Salt Lake Sector V, and plans to add 2 new centres in the next 3 months.

Awfis Space Solutions currently has the largest network of coworking spaces with 131 centres and 77,500 seats across 14 cities.

This story appeared in the 13 October, 2022 issue of Economic Times and was originally published at: Awfis leases over 11k sq ft workspace in Kolkata to 3 large corporates in 6 months

Flexible space demand rises in step with return to office

03 August 2022

Flexible space demand rises in step with return to office

  • Posted by Awfis Editorial

After a gap of two years, the return-to-office arrangement has gathered momentum, with 74% of the occupiers of office spaces looking toward distributed workspaces as a strategy to shift from location-centric to people-centric work facilities, mentioned a C-Suite Survey conducted by Colliers and Awfis.

The report further mentions that the new work way is expected to enable flexibility for employees while furthering productivity gains for businesses and includes a hybrid way of working wherein employees come into the office a few times a week.

The survey was conducted amongst top CEOs and CXOs across IT/ITes, BFSI and e-commerce sectors, with more than 150 companies participating. It mentions that about 35% of the occupiers have seen a majority (75-100%) of employees return to offices.

“Distributed workspace strategy is the way to go for occupiers in this new era of experiential workplaces, as occupiers emerge from the after-effects of the pandemic,” said Ramesh Nair, Chief Executive Officer, India and Managing Director, Market Development, Asia, Colliers. “Flex spaces, in particular, are leading this growth, as occupiers from varied sectors are housing teams in flex centers across cities.”

This shift in strategy is also reflected in the leasing by flex operators. They leased about 3.5 million sq feet of space in H1 2022 across the top six cities.

This story appeared in the 3 August, 2022 issue of The Economic Times and was originally published at: Flexible space demand rises in step with return to office

Awfis elevates Sumit Lakhani to Deputy CEO

21 July 2022

Awfis elevates Sumit Lakhani to Deputy CEO

  • Posted by Awfis Editorial

Awfis, one of the country’s largest network of coworking spaces has announced the elevation of Sumit Lakhani as Deputy CEO of the company. Previously, Sumit was the chief sales and marketing officer at Awfis and has been a crucial part of the company since it’s inception in 2015.

Lakhani has been instrumental in building the company from the ground up. He’s played a key business role, not limited only to sales and marketing. With his keen interest and acumen in finance and strategy, he has also been in the forefront of delivery, revenue generation and maximizing operational excellence. In his new role, Sumit will be responsible for all facets of the company’s investor relations, FP&A along with the existing responsibility of sales and marketing.

“Awfis and will continue to strive to further enrich the experiences for our existing community and scale towards greater heights. Awfis is redefining the future of work that focuses on creating a flexible, dynamic, and collaborative workplace environment for all its stakeholders and I am delighted to be a part of this journey.” said Lakhani.

Amit Ramani, Founder & CEO, Awfis said, “With his demonstrated ability to balance operational excellence with financial and marketing discipline, Sumit will provide instrumental leadership and direction to Awfis. I am confident Sumit will continue to drive innovation and growth for Awfis in his new role.”

Till date, Lakhani has successfully led various rounds of fund-raise and his zealous commitment to transform Awfis from a coworking network to a complete workplace solution platform.

This story appeared in the 21 July, 2022 issue of The Economic Times and was originally published at: Awfis elevates Sumit Lakhani to Deputy CEO