Tax Considerations When Selling Property in India: A Comprehensive Guide
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Change of commercial real estate and office design in the post-pandemic world
Will there be any change in the prospect of commercial real estate in the post-pandemic period?
Will the office spaces be of any use in the post-pandemic world?
Will commercial real estate get demolished in the advent of work-from-home culture?
There are many questions. And finding the answers often causes trepidation in the real estate sectors for whom commercial real estate is another important and profitable wheel of the whole system alongside residential real estate.
When in the beginning the prospect seemed very grim, but with the passage of time, people getting vaccinated and getting ready to live and fight corona with a portion of the population going back to the office after about 1.5 years, now there seems some light after the heavy cloud. A recent study conducted by Economic Times has shown that the downfall of commercial real estate prospects at the beginning of the pandemic period is now recovering slowly. Especially in Mumbai, the Q3 gross leasing volume has risen by 80% when compared to the previous quarter, however, the overall leasing in the city is still down 54% y-o-y. Rents in Mumbai have stayed most stable, without much correction.
Therefore, though there won’t be any outright downfall, the designs of the offices and the subsequent requirement of the office spaces will witness some changes. Let’s have a look at how offices and their space requirement will change in the post-pandemic world.
HOW OFFICE SPACE DESIGN WILL CHANGE IN THE POST-PANDEMIC WORLD
More meeting rooms, fewer workstations – While the work-from-home system is not very new a culture, the proportion for people doing work-from-home will increase considerably in the post-pandemic world. However, team meetings, client meetings, and other formats of official meetings will still require office spaces. Therefore, it is expected that offices will now require more meeting rooms, rather than individual workstations.
Co-working space to gain importance – It is understandable that now fewer people will be visiting the office on a regular basis. Visiting offices now will be mostly need-based. As such, maintaining a huge space to accommodate all employees will basically be useless. It is expected that in the near future, co-working spaces will gain more importance. In a coworking system, several companies occupy small areas within a single floor and conduct their day-to-day operations. It can help companies significantly reduce administration costs.
Multiple small offices at multiple locations – It is expected that the companies will be more open to adopting multiple small office spaces in different locations instead of one central location. This will allow the companies to hire people from different locations and offer them workspaces close to the home. It has been noticed that post the pandemic, people are less willing to travel far for work especially to avoid public transport and maintain safe social distances.
More open spaces and greenery– With the social distancing becoming a norm and the fact that the closed spaces are breeding grounds for viruses and germs, the commercial spaces now will focus on being more open and spacious allowing open air to enter. Also, indoor greenery will be a new thing as indoor plants are known to clean the air, increase oxygen in the air and are supportive of overall health and immunity.
Recreational spaces – Pandemic has proved that sitting long hours at the desk and working continuously is more detrimental to our health than anything. Also, it does lower our immunity. Therefore, people will now look for spaces that allow them to take some time out and invest in exercising, walking or simply breathing some fresh air. However, going away for a long time from the office is not really feasible, therefore space recreational activities in the commercial arenas will be the new thing in demand in the post-pandemic world.
Do you have any more ideas about how pandemics will be affecting the office space designs? Share your thoughts in the comments.
FAQ’s About “How does AI technology impact commercial and multifamily real estate investments?”
Artificial Intelligence in the real estate industry is positively impacting commercial real estate brokers by saving time and money. Machine learning technology can now be used to track market movements and leasing activity on a macro level that help the brokers and investors seize opportunities and maintain a competitive edge. Coming to the multifamily industry, AI is actually helping onsite staff in leasing apartments. A recent report has shown that artificial intelligence is helping leasing agents to know which prospects will lease an apartment before even the prospect knows. AI-powered leasing apps are bringing the best technology into multifamily by automating the entire leasing funnel from start to finish and converting leads into residents. Property management is another important area wherein the role of AI can be utilized to its full potential. Now the property managers manually deal with a multitude of data about tenant profiles, tenant applications, inspection requests, and other inputs. Applying AI, there can now be streamlined data processes, systematic automation of mundane tasks, and lower redundancies, thereby making the system more efficient.
