The workplace is changing, and Managed Offices are at the forefront. The “core + flex” model is becoming the new norm, with a 58% increase in flex space leasing and 47% of Indian corporates implementing flexible offices, as per a study conducted by CBRE. Because managed offices are flexible and affordable and offer amenities that improve employee well-being and productivity, companies of all sizes are moving towards them. In this blog, we will examine the elements influencing this trend and how Managed Offices transform the contemporary workplace.

Market Growth and Trends

With the closing of the first quarter of 2024, India witnessed a substantial surge in demand for office spaces. Notably, Bangalore and Hyderabad emerged as key growth hubs, underscoring their significance in the corporate sector. According to industry predictions, this trend is expected to continue, with managed offices accounting for 20% of all office property by 2025. But what is driving this demand?

Transition to Flexible Work Settings: The main driver behind this growth is the flexible workplaces of businesses looking to reduce costs and increase flexibility in their real estate holdings.

Trends in Corporate Real Estate: Trends in corporate real estate suggest that more adaptable and personalised office options are replacing standard leases.

Business Requirements: This movement is driven by businesses’ need to quickly adjust to shifting market conditions, which makes serviced offices a desirable alternative for organisations of all sizes.

Shift from CapEx to OpEx

Managed office buildings are one sector where the shift from Capital Expenditure to Operating Capital Expense is most evident. These buildings give businesses access to amenities and flexible leasing terms without requiring large upfront capital expenditures.

Financial Benefits: Zero CapEx-managed office spaces are an affordable substitute for typical office buildings, enabling firms to save upfront capital investments on furnishings and infrastructure. Businesses can better manage their budgets and prevent unforeseen expenses when there are fixed monthly rates and no hidden costs. This idea is helpful for startups and multinational corporations (MNCs) seeking to lower operating expenses and improve financial flexibility.

Additionally, Coworking Space reduces overhead costs for building management and upkeep, allowing companies to reallocate capital to expansion plans, innovation, and strategic investments that ultimately drive long-term profitability and success.

Flexibility & Scalability: Custom-designed managed office space providers offer flexibility and scalability, with average occupancy rates ranging from 60% to 80%. Most providers offer flexible lease terms, scalable space options, and access to a network of locations. This flexibility enables businesses to adapt to changing needs, save on CAPEX, and prioritise employee well-being. As the workplace evolves, integrating ESG considerations and adopting hybrid models are becoming increasingly important.

With advanced workplace solutions gaining priority over traditional ones, managed office providers are redefining strategies to accommodate these shifts and support businesses in implementing effective return-to-work strategies.

Focus on Core Business Activities: Businesses can also benefit from a managed office’s ability to boost productivity. Businesses don’t have to worry about managing an office daily when they have that handled through managed office service providers and have access to cutting-edge technology, high-speed internet, and various business services. Business centers can accomplish their objectives more quickly due to increased productivity and efficiency.

Enhanced Employee Experience: Every organisation’s most critical factors are its employees’ comfort and well-being. To foster a positive work-life balance, many businesses prioritise offering wellness programs, ergonomic office design, and recreational possibilities. These place a high priority on the welfare of their workers, fostering a joyful and effective workplace.

Advanced Technology & Infrastructure: Shared office space buildings typically include modern technology, robust internet connectivity, state-of-the-art security features, and round-the-clock IT support.

These features ensure businesses don’t need significant maintenance or investment commitments to use trustworthy and safe technological resources. With on-site IT help, companies can solve technological challenges more rapidly and successfully.

Prime Location and Ease of Accessibility: In contemporary offices, prime location and accessibility are essential since they significantly impact employee productivity and corporate operations. Plug-and-play office spaces provide easy access to clients, partners, and talent with significant locations in busy cities, CBDs, and transit hubs. In addition, these places promote networking, creativity, and teamwork.

Businesses can benefit from managed offices’ convenient accessibility, as many locations provide round-the-clock access, safe entrance systems, and plenty of parking. This convenience not only impresses clients and visitors with a distinguished corporate address but also allows staff to work flexibly and productively.

Conclusion

In conclusion, managed offices transform business workspaces by providing ideal locations, flexibility, and affordability. iKeva offers customised managed offices that boost productivity and growth while meeting various corporate requirements. With iKeva’s customised solutions, embrace this transformation and prepare your workspace for the future. Join the progressive businesses that have already adopted this change and experience a new level of success, productivity, and innovation. Select an office from one of iKeva’s managed locations to start your journey towards an elevated work environment.