Regus innovates, provides plug-and-play model for offices
The commercial real estate in India was adversely affected due to economic slowdown and corporate downsizing their operations in 2013. High rentals, inappropriate design layout and an immense oversupply have added insult to injury. International property consultancy firm Regus saw this as an opportunity to innovate and introduced plug-and-play model. The clients get to use offices as they want. Among Fortune 500 companies, the likes of Google, Apple, American Express, BMW, Toshiba and Nokia are on their client list. The rationale is a company does not want to invest in creating infrastructure in each country when it doesn’t really know how well or how quickly it will grow, added Sahil Verma, COO, Regus.
Local developers like Apeejay Business Centre and DBS Office Business Centre are also into providing office spaces using plug and play model. They broke away from the traditional business model of letting out office space at a pre-decided rent on a per square foot basis. They are offering leases for work stations too.
Regus informs that with them, clients end up saving 30-40% in rentals in per square feet terms.
Cushman & Wakefield points out that it is the best time to buy commercial property and 2014 and 2015 are likely to see appreciation in the rates.
Source: Money Control
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