What are the recent trends in commercial leasing post covid (e.g., restaurants and warehouses leasing)?

 The unprecedented health crisis due to Covid 19 pandemic has disrupted most of the businesses during 2020 and 2021. The commercial real estate segment in India bore the brunt as leasing activities stopped abruptly, after registering an impressive growth in previous years. The chaotic situation where leases were renegotiated, spaces vacated and payments defaulted, created an unprecedented low for the CRE sector. However, 2022 ushered into a new hope with a successful vaccination program and no serious community health challenges.


Firstly, the importance of both, Grade a tenants with high credit worthiness and Grade a spaces available for leasing, has become more pronounced. The other and equally important trend is the offer of flexible lease options that landlords are willing to work out with tenants especially for Grade B properties.

In addition to these widely observed trends, the increasing acceptance of flex spaces and co-working spaces is also noted across all major cities. Probably corporates are using these to tide over the short term uncertainties of businesses and, to delay capex.

A big chunk of corporates are now trying to mitigate the impacts of the crisis by adopting multiple channels to reach the customer. This is mainly for the businesses that are operating in the service sector. Some businesses like restaurants and retail stores endured the extreme despondence and altered their business model with a mix of online and physical presence.

The long drawn pandemic has also brought societal well-being and sustainable issues in focus. Though workplace transformation with sustainability and collaboration at its core had begun a few years back, the pandemic has fast tracked the progress of the same.

Let’s examine some of these trends in detail.

  1. Increasing importance of Grade A tenants and spaces

  2. Acceptance of new lease structures

  3. Space redesign requirements

  4. Flex-spaces as new tenants

  5. Relevance of lease to hybrid business models

  6. Sustainability issues

Click here to read more…

Comments

Post a Comment

Popular posts from this blog

What is the importance of technology and data analytics in commercial leasing?

Image
A CRE platform that uses technology and data analytics can help both the property owner and the tenant. The property and location specific data helps an owner to unravel the unique advantages of a space and thereby reach out to right brands. Similarly, a brand looking out to rent a place finds it incredibly helpful to shortlist properties with the help of relevant and updated data. An obvious question at this stage is “what are the technologies or data analytics that we are talking about” in the context of  commercial leasing .  The involvement of technology starts even before the first step is taken to either offer a property for leasing or searching for a property to lease. A CRE platform using technology helps a property owner understand the characteristics of the property better and therefore supports him to decide on the potential renter as well as the rental range. Similarly, availability of various demographic data points specific to a location helps a brand short-list ...
Read more

Who are the leading commercial property consultants in Delhi NCR and Gurgaon?

Leading Commercial Property Consultants in Delhi NCR and Gurgaon This blog post is for all  commercial property consultants  who are looking to expand their business in Delhi NCR and Gurgaon. If you're not familiar with the two cities, then here's a little information about them: Delhi NCR is where India's capital, New Delhi, is located; meanwhile, Gurgaon is an industrial city that has seen rapid growth over the last few decades due to its strategic location near New Delhi. From one of these two locations, you could potentially offer your services to clients in many other major Indian cities like Mumbai or Chennai. As such, these are very attractive markets for any prospective consultant! Now let us get into the details of how to set up shop as a  commercial property consultant  in these two boomin'g metropolises. In Delhi NCR, there are a few things you'll need to do in order to establish yourself as a credible  commercial property consultant . First and forem...
Read more