Sep 11, 2019 Blogs Office Space

Factors that Influence People to Choose Office Spaces in Bangalore

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Bangalore, famously recognized as the “Silicon Valley of India” is a prime destination for businesses of all kinds. Businesses that specialize and undertake IT services such as Infosys and Wipro and also ISRO, the country’s space research organization have their headquarters located in Bangalore, along with eCommerce ventures like Flipkart, Myntra and Redbus. With industry leaders choosing Bangalore to setup their office, it motivates other new and small businesses to also consider this city as their primary option. This has made Bangalore one of the most sought after business locations to set up their office space. This also makes the journey to find a reliable commercial space, tricky, expensive and exhausting.

There are certain factors that influence people while selecting a commercial property either for lease or to buy in Bangalore. These factors are driven by lack of important resources.

Renting versus Buying Commercial Space in Bangalore

Bangalore is a commercial hub and property prices here are at an all-time high. Scouting for the ideal space in the city may not only take a lot of your time, but may also prove to be a tedious task. Startups find it all the more difficult to zero down on an office space as their needs are constantly changing. In such a scenario, businesses find it is better to rent/lease a place.

However, lease as per the traditional model compels the lessee to shell down a huge amount of down payment which locks away capital. This increases CAPEX for a new business. Eliminating, these difficulties, is the coworking and shared office model.

Co working spaces and shared offices are good options for startup businesses and Bangalore has an abundance of such office spaces because of the upcoming demand. Inflation in property prices of commercial spaces are amongst the top reasons that influence people to step away from buying.

Leasing an office space or using serviced/shared offices spaces can prove far more beneficial as they can accommodate the constantly fluctuating needs of a company with ease. Whether the business expands or deflates, serviced office spaces can be adjusted accordingly and hence, people find these to be a more convenient option.

Factors like location and size are prime elements that affect the accessibility and efficiency of businesses greatly.

Enlisted below are some of the factors that people consider when buying or renting office spaces in Bangalore:

  • Term of Lease: A term of lease can usually be decided upon by the landlord and the lessee. This contract can be extended once the original term expires if the lessee and landlord both wish so, otherwise, one can always look for another office space that suits the additional needs of the firm. Plus, when choosing a shared office space, the terms of lease are always clear and transparent.
  • Flexibility: It is always possible to move out from a leased office space without going through the hassle of having to sell it to another buyer. You always have the option of terminating the lease if in case, the business expands or contracts and the space doesn’t suffice.
  • Upscale and downscale: Any prime location faces uncertainty when it comes to property prices. Values of such areas undergo sudden rise and fall which makes it difficult to purchase a place and recover costs when selling. Startups find themselves in a constant state of worry as their businesses upscale or downscale.
  • No heavy down payment: Buying a commercial property would involve heavy down payments which could take away from the company’s capital. Such down payments are often non-refundable and therefore most businesses avoid them. Serviced offices, on the other hand, do offer flexible agreements with no CAPEX and other benefits.

Accessibility to Clients and Customers

The location of the office space can directly affect the growth of the business. Accessibility to customers, clients and peers plays an important role in the development of a firm. It is also easy to maneuver resources if the office is located suitably.

Access to emergency services, transport hubs and proximity to target consumers are some factors that play a pivotal role when deciding the location of an office space.

Provision of Amenities and Security

Plug and play offices are ready to use with the necessary IT infrastructure already available. Renting a co working space thus saves people from the additional burden of having to look for such staff and avail such amenities.

Security, power back up and customization are some additional things that plug and play offices today provide, thus making them an ideal choice for startups and growing businesses.

Being a startup in a city which is brimming with opportunities as well as competitors has its perks and disadvantages but primarily it means, that no time and resources can be wasted. Finding an ideal space, for the right price which can help your business thrive is of utmost importance.

Decisions related to leasing and renting an office space in Bangalore is driven by several factors. This is a critical decision for businesses that rely on location to enhance their business. Especially for small business owners and startups that are constrained by resources and options rely and opt for flexible and adaptive solutions like a coworking space, share office or a plug and play office that suits their needs.

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