How to Tackle Rising Real Estate Costs and Underutilised Office Spaces Effectively

Two major complications with regards to office space one often encounters are:

·         Skyrocketing real estate costs

·         Less than optimal utilisation of office space

Here are a few pointers that will help you figure out the “whats” and “hows” of such issues.

Acquiring property for a business is a very tedious process that involves several professional and legal issues. Moreover, one cannot totally avoid real estate costs. In addition to the obvious rent, lease or property costs, real estate also involves associated costs:

·         Prominent Location

A business in a prominent location generally turns out to be more profitable, because not only does it attract more clients and project a brand image, but it also promotes employee satisfaction as it offers ease of commute.

However, offices in premiere locations come at huge costs that generally de-motivate the buyer.

·         Brokerage Costs

Brokerage charges are the fees charged by a realty agent to facilitate transaction between the buyers/tenants and the sellers/owners of the property. Mostly, when the intent is business, the agents charge erratic amounts.

·         Stamp Duty & Registration Fees

A certain amount of legal expenditure, such as stamp duty and registration fees, is involved in real estate registration. Unless the registration procedure is completed, one doesn’t have legal ownership of the property.

Other additional costs of real estate include infrastructure, furniture, fixtures and maintenance charges. These associated costs are constantly escalating, making real estate a huge concern for managers.

Mostly, people tend to take up large offices for their businesses in order to avail flexibility. However, most of the office space and infrastructure remains unutilised. While this seems to be a relatively smaller issue, one actually spends a large sum of their budget on infrastructure that isn’t optimally used, in the form of maintenance, repair etc. Unutilised or underutilised space also amounts to a huge expense in terms of the rent or lease paid for the space.  

Moving to a smaller office won’t solve this issue, because then, one would have to compromise on the flexibility larger offices provide.  For example, expansion would again require moving to a larger office thereby incurring large additional costs. Also, a smaller office also proves to be a hindrance in conducting professional meetings and conferences.

For a professional and hassle free solution to the problems of real estate costs and underutilised office space, serviced offices are the path to take. Serviced offices optimally address these issues in the following ways:

1.       No Additional Costs

Serviced offices are fully furnished with the required infrastructure for your business. This solves the problem of erratic real estate costs by providing a simple solution of a monthly all-inclusive bill.

2.       Customizable Infrastructure

Serviced offices provide state-of-the art infrastructure, according to your requirements. You can customize your office space with the infrastructure you require, and pay only for that.

3.       Prominent Locations

With serviced offices, one can avail the advantage of prominent locations at no extra cost. This way, you can rub shoulders with the corporate giants of the industry and build your brand image.

4.       Flexibility

Serviced offices offer a range of layouts and sizes, as per your requirements. As your business expands, you can move into a larger office space as easily as moving next-door.

5.       Cut Costs on Unutilised Infrastructure

Pay only for what you use. If your office isn’t using up all the space, enhance your business efficiency by moving into a smaller office and mitigate costs on unutilised infrastructure.

6.       Additional Facilities

Professional fully equipped meeting rooms, training rooms, and conference rooms can be availed as and when required, thereby allowing you to save costs associated with them.

7.       Value Added Services

You can also avail value-added services such as secretarial, receptionist and concierge services at serviced offices.

Avanta India offers state-of-the-art office spaces at the prominent locations of Connaught Place and Saket in New Delhi. Avanta provides a comprehensive range of services including fully furnished Serviced Offices, well-equipped Meeting Rooms, and flexible Virtual Offices.

Contact us to learn how we can help you cut on real estate costs and optimally utilise your office space.