The startup culture has brought a new dimension to the commercial real estate sector. Depending on the diverse financial capabilities, these emerging business enterprises are in search for office spaces on multiple scales. We have already seen how the online market places like Snapdeal and Flipkart have opening breathtaking office spaces. These flourishing startups are widely regarded to spearhead the digital revolution in India and time has arrived for commercial developers to realize the prospects of the industry and provide a perfect platform for their growth.
Commercial real estate needs to move along with the time and adapt to the changing paradigms to ensure good business. Unlike any other business heavyweights, the real estate industry should know that start ups have a volatile nature and its quiet hard to determine how much success it can achieve as time pass by. There are both the instances of startup’s starting with utmost glamour and show perishing within a year and also startups which hardly managed to begin its operations and eventually hailing to massive success.
Flexible office spaces
Starts up firms are in search of office spaces that address their needs perfectly. Starting from a bunch of persons or a small group of 20-30 work force/partners, we cannot expect these small fishes to lease office spaces for long leases, say five years. With uncertainty on future, these firms are looking to rent flexible office spaces both in terms of time and size. In a win-win situation for both, developers can offer a 10,000 sq ft office space and part it to four or five start ups and cater the needs of startups.
Reasonable Rental Rates
High rental rates have often lashed the hopes of the emerging start ups. It is a major bottleneck faced by startups. But once the firm is established and running successfully, then they are bound to expand the rental sheets as part of their expansion. In the preliminary stage, startups require a feasible office space that would cause wrinkles in their wallet.
Startups prefer to have an emerging location in a prime area of the city. The location is also appropriate it is close to the co-working office spaces of several other startups. Startups also urge to have a work culture that is very informal and tranquil to suit their needs and developers should keep this in mind while delivering spaces for start ups.
In a rough figure, at least three to four startup companies are emerging in India per day. This particular culture is fuelling a cultural thrust that makes the work forces to break the contemporary shackles and think big, innovative and even take risks. In this scenario, commercial real estate can help in fostering the Indian start up culture and encourage it to drive the digital revolution in the country.