The concept of business centre has been traditionally popular with commercial firms exploring business possibilities in a certain market with limited staff or with consultants who are self-employed. Chennai has evolved as a predominantly IT/ITes destination with majority of the work involving handling of sensitive third party or captive data. Also owing to the fact that the volume of the outsourcing work is immense, IT/ITes companies have appointed scores of employees that compel them to occupy vast swathes of real estate.
In view of the fact that business centres work on a per seat model with a common server provided for internet usage, the cost and data security aspects don't work well for the IT/ITes sector. Thus, business centre, Chennai as a commercial proposition hasn't quite flourished. There have been pockets around the CBD and SBD areas that have provided this service with a few industry leaders even having an outpost simply for presence, but the market hasn't developed as much as the commercial capitals of Delhi or Mumbai.
However, the co-working juggernaut that has been rapidly growing in stature on the back of the booming start up culture pervading through the country, has started knocking on the doors of Chennai. With major domestic and international players spreading their tentacles in the major metros of Delhi, Mumbai and Bangalore, attention is gradually shifting to other urban centres such as Chennai, Hyderabad and Pune. What is also interesting to note is that a couple of the major players in this sunshine sector are promoted by reputed real estate developers based in South India. Therefore, an expansive push into already well-versed markets is all but natural.
The latest metamorphosis of the business centre model has provided a new identity on which brand business centre Chennai can build upon. In the other markets where they have a strong presence, co-working companies have tweaked their business model to cater to IT/ITes companies, especially firms that want to start small, or have temporary space requirements. They have evolved a sort of real estate outsourcing model, where the co-working brand takes the space on lease and fits it out in return for pre- commitment of a certain number of seats or the whole facility, by occupiers. The daily operations of the facility are managed by the space operator. Hence, in combination, this model enables the occupying entity cost rationalizations in both capital and operating expenses.
Large campuses such as DLF Cybercity, Chennai present a fantastic playground for such concepts to advance. With vast open spaces and world class leisure facilities on offer within the self-sustaining development, co-working concepts can look at cost rationalizations of their own. One of the reasons for co-working concepts to rise in popularity is the informal, edgy and “cool” environment they provide by way of design of their work areas. This is supplemented by amenities that include a break -out area, F&B zones etc. However, within developments like Cybercity, because facilities are already in abundance, co-working operators can look to save space for services and build larger work areas, thus attracting larger tenants and improving bottom line.
Greenfield sectors such as co-working are providing fresh opportunities for growth and market expansion. With such new models of real estate evolving, these are indeed exciting times for real estate in Chennai. for more details please log on to http://www.dlfcybercity.com/chennai
For more information, visit: http://www.dlfcybercity.com/chennai