5 Ways That Help You Reduce Costs on Office Spaces!

Posted on by fortuneprops

One of the common problems faced by most of the growing start-ups is finding an ideal office space for their budget. As and when the business starts to grow, you will have to add more number of employees to meet the requirements of your clients, which means you have to expand your office to accommodate more employees. Of course, there are lots of office spaces available in the market out there, but the budget might be a constraint for you as you are now a growing company. But here are a few ways that might help you reduce the costs on your office space.

  1. Consider Suburbs: Probably the cool factor is the thing that is attracting the entrepreneurs to expensive downtown office spaces even when there’s no business case for it. Of course, location plays an important role for some business, but there are some businesses for which location is not a matter. If yours is one such business, consider going for a space which is in suburbs. Employees also love such areas as the traffic will be less. You can easily find a space at an affordable cost in such areas.

 

  1. Transform Your Current Space: When the team size is growing and you want to expand the office, hire a professional interior designer who can offer new insights to the existing workplace. A professional designer can bring in whole new light to your office and also help you in expanding the space by altering the furniture and other things to accommodate more employees. So, you don’t have to spend on a new office building to accommodate your employees.

 

  1. Prefer Longer Lease: A stable tenant will often be a best friend for the landlord. I.e. the landlords will be ready to offer great discounts for the tenants who make agreement for a long term. This allows the company to acquire a larger space than it actually needs without increasing its immediate overhead.

 

  1. Find a Sub-lessee: Rent space more than you actually require and sublease the extra space to another company (with the approval of landlord). This would really help in reducing your burden of paying the rent at least to some extent. Also you will have access to the extra space whenever you need it, but you don’t have to pay for it.

 

  1. Choose an Open Floor Plan: Many global organizations these days are opting for open floor design as they know the benefits it’s got to offer. It’s definitely beneficial when compared to the normal cubicle designed offices. You can just take off the drywalls around, and can use more square footage when you need extra space to accommodate more employees.

The above mentioned points can be of a great help for you when your business is growing, and you are looking for an office space at an affordable budget to accommodate more number of employees. Just plan well and move ahead while deciding to move on to a new office space.

2015 – A Favourable Year for Real Estate Industry

Posted on by fortuneprops

The office space absorption in India stood at 35 million square feet in 2015, which is the second highest absorption rate after 2011. While the vacancy in PAN-India stands at 16%, it’s just 8-9% that’s being supplied to the corporate occupiers.

The major cities like Bengaluru, Pune, Chennai and Hyderabad have a vacancy rate for office space is  just 5-10%, and they are prompting the need for fresh supply to meet the growing demands. Though, the land and construction costs are rising each day, rents have not reached a point where developers can get an IRR (Internal Rate of Return) of about 20%. This has been a main reason for developers moving away from commercial projects.

Residential Real Estate

Though the year 2015 didn’t bring up the expected growth in residential real estate, the bad days seems to have vanished. The sales have picked up in a few major cities like Mumbai, Bengaluru and Hyderabad. The initiatives taken by developers like offering attractive schemes and deal terms along with the lowered interest rates seem to have engaged the fence-sitters. The signs look encouraging; so the year 2016 seems to put an end to the difficult journey of the sector.

Retail Real Estate

The year hardly saw major happenings in the retail real estate sector. However, two big trends were noticed.

  • Consolidation of retail real estates by retailers and brands that focussed on the profit making stores closing down the loss causing ones.
  • Entry of institutional investors; this would make the single brand retail companies undertake ecommerce business independently.

More and more mature investors are expected to come and buy built-up real estate spaces in 2016.

Manufacturing and Warehousing

The year did nothing except putting a solid foundation for the manufacturing sector to get going in 2016. Under the Make in India programme, the states can come up with their own strategies, schemes and policies, which would help them in fuelling the industrial growth.  The warehousing sector seem to be reaching an inflection point and it’s sure to take a huge leap forward once the Goods and Service Tax (GST) is rolled out.

The real estate industry is getting matured each day; until 2014, the industry was highly inefficient, fragmented and unregulated. Though 2016 is expected to bring in some positive changes in the industry, the experts still feel that the industry still remains fragmented and moderately inefficient in 2016 as well! Only the growth in Indian economy can bring some favourable reflections in the real estate sector.

For more information:

Office space in Bangalore