Over 50% of office space demand may come from domestic firms in 2024: 91Squarefeet

Amit Bansal, co-founder of 91Squarefeet, a leading new-age commercial fit-out company, discusses the evolving commercial real estate landscape in India in an exclusive interview with Bizz Buzz. Bansal dives into the impact of rising domestic demand for office space, the influence of Grade A office spaces, and the opportunities for Global Capability Centers (GCCs). He also sheds light on 91Squarefeet's growth trajectory and its contributions to shaping the future of workspaces in India.

With domestic companies expected to drive over 50 per cent of office demand in 2024, how will this affect the commercial real estate landscape in India?

The increasing demand for office space driven by domestic companies is poised to significantly impact the commercial real estate landscape in India. With over 50 per cent of office demand expected to come from domestic firms in 2024, this trend highlights the growing importance of local businesses in driving economic growth and employment opportunities. This surge in demand will lead to a tightening of the commercial real estate market, resulting in increased competition for prime office spaces and upward pressure on rental prices.

As a leading new-age commercial fit-out company, how has 91Squarefeet grown to make relevance in the commercial real estate industry? What are the strategies planned for the next 2-3 years?

Since our inception in 2019, we've been committed to simplifying fit-outs across various sectors, including offices, retail, data centers, and warehouses. With headquarters in Gurgaon and offices in Mumbai and Bangalore, we've successfully completed over 1100 projects across 230 cities. Our journey has been supported by significant funding, including a $1 million seed investment from notable angels like Kunal Shah and Nikhil Vora (Sixth Sense) in December 2021, followed by a $10 million Series A round from YCombinator, Stellaris, and Betatron in August 2022.

Currently, our team of 250 professionals, including 30 architects and 150 project management experts, drives our success. Over the past year, we've aggressively expanded our team, hiring approximately 200 individuals. Looking ahead, we're poised to accelerate our hiring efforts, with plans to onboard 100 architects and 500 project management professionals in the next 12-18 months. This relentless focus on talent acquisition, coupled with our tech-driven approach, solidifies our position as industry leaders.

Talking about our strategies for the near future, we plan to deliver more than 200 projects in 2024. We cater to the increased demand and plan to rapidly scale our workforce by hiring more than 500 project managers in 2024. We also understand that the present commercial fit-out industry has a huge disparity in terms of pricing. That's why we aim to standardise the pricing and deliver quality projects at a reasonable price that would resonate with the client. We strive to become the one-stop solution for all the brands who want to open an office in India.

How will the increasing prominence of Grade A office spaces, particularly in sectors like banking, financial services, and insurance, influence the overall leasing market?

The demand for Grade A office spaces is likely to be propelled by the banking, financial services, and insurance sectors, along with the engineering and manufacturing sectors, while flex spaces are forecast to drive about 15-20 per cent of the overall leasing. Companies now prefer spaces that integrate new-age technologies to accommodate modern space concepts and also at the same time, are environment-friendly and sustainable. As the demand for these spaces increases, more and more developers have started offering Grade A office spaces for lease. But this demand and added features, also directly impact the increase in rental prices for these spaces.

How does the significant presence of companies employing a large portion of their global workforce in India impact GCCs operating in the country?

As more companies expand their presence in India, Global Capability Centers (GCCs) are seeing a surge in demand for their services. This includes everything from IT and business process outsourcing to research and development. The commercial real estate market in India has the potential to grow by a whopping 60 million square feet, largely due to the substantial demand from both domestic businesses and GCCs. This indicates a promising outlook for the industry, with opportunities for growth and expansion on the horizon.

This surge in demand not only underscores the strategic importance of India as a key hub for global operations but also presents significant growth opportunities for GCCs. By leveraging India's vast talent pool, advanced infrastructure, and favourable business environment, GCCs can enhance their capabilities and deliver greater value to their parent companies.

Moreover, the growing presence of global companies in India encourages collaboration and knowledge-sharing between GCCs and their parent organisations which drives innovation and efficiency across the board. As a result, GCCs are well-positioned to play a pivotal role in supporting the global expansion and success of their parent companies while contributing to India's continued economic growth and development. 91Squarefeet as a brand is actually looking forward to being able to contribute to making these Global Capability Centers in order to help companies build the future of India

Technology is pivotal in modern commercial fit-out projects. How are industry players leveraging technological advancements to streamline processes, enhance efficiency, and deliver innovative solutions?

In modern commercial fit-out projects, technology plays a pivotal role in revolutionizing traditional processes and driving innovation. Industry players are opting for technological advancements in various ways to streamline processes, enhance efficiency, and deliver innovative solutions.

One key area of focus is the adoption of Building Information Modelling (BIM) software, which allows for comprehensive digital representations of building designs. This enables stakeholders to collaborate more effectively, identify potential clashes or inefficiencies early on, and optimize designs for better outcomes.

Additionally, the integration of advanced project management tools, cloud-based collaboration platforms, and IoT-enabled sensors enhances communication, tracking, and monitoring throughout the project lifecycle. This facilitates real-time decision-making, improves productivity, and ensures timely delivery of projects.

Furthermore, the incorporation of virtual and augmented reality technologies enables clients to visualize designs and make informed decisions, leading to greater satisfaction and project success. Overall, by embracing technological advancements, industry players are transforming commercial fit-out projects, delivering greater value, and driving innovation in the built environment.

Amid rapid urbanization, how does the commercial fit-out industry seize opportunities and address challenges in designing and optimizing spaces within densely populated urban areas, ensuring functionality and efficiency?

The commercial fit-out industry or the construction industry in general has undergone a massive revolution in terms of technological advancement over the past decade. The advancement has not only been in terms of technology integration in commercial fit-outs, but also in terms of planning and designing space to make the most of the provided space. With advanced technologies like BIM, virtual reality etc. professionals can ensure the best possible functionality and efficiency of a space.

Furthermore, collaboration with urban planners and architects helps navigate regulatory complexities and zoning requirements, ensuring compliance while optimizing space usage. Adopting sustainable design principles and implementing energy-efficient solutions also contribute to creating environmentally conscious spaces that enhance both functionality and efficiency.

Moreover, embracing flexible and adaptable designs allows spaces to evolve with changing needs, accommodating dynamic work environments and diverse user preferences. By continually innovating and adapting to urbanization trends, the commercial fit-out industry remains at the forefront of creating vibrant, functional, and efficient spaces within densely populated urban landscapes.

With domestic companies expected to contribute significantly to the office space uptake in 2024, what implications does this hold for the overall growth and stability of the commercial real estate sector?

The expected significant contribution of domestic companies to office space uptake in 2024 bodes well for the growth and stability of the commercial real estate sector. This trend underscores the resilience and potential of the domestic economy, highlighting the robustness of local businesses amidst evolving market dynamics.

As domestic companies expand and diversify their operations, they create demand for office spaces, driving leasing activity and supporting property values. This increased demand not only stimulates construction activity but also fosters competition among developers, leading to innovation and quality improvements in office space offerings.

Moreover, the growing presence of domestic companies in the commercial real estate market enhances market stability by diversifying tenant portfolios and reducing reliance on international factors. Ultimately, the influx of domestic companies contributes to a more balanced and sustainable growth trajectory for the commercial real estate sector, benefiting stakeholders across the board.

With the surge in construction prices in the market, how can one provide quality, affordability and efficiency in a commercial fit-out business?

Construction costs have surged significantly over the past decade. With the increase in import costs, labour costs and material costs, the overall project's costs have shot up. Many of these costs are initially invisible because of a lack of processes to track the expenses during the entire project lifecycle. These costs can be efficiently controlled by project management tools like R'dash, or any other tool that helps you manage the entire project P&L on a single platform. One can also control these costs through collaboration with manufacturers and distributors to help control the material costs.

With the current needs of different organisations, what are a few elements that make the right workspace?

Currently, every organisation has a very defined set of requirements varying widely in terms of the look & feel of the space, budget and space requirements. But one thing that has been consistent with them is that now the focus has shifted from the size of the space to the well-being of their employees. Organisations are open to investing in the overall workspaces that keep their employees at the centre. Multiple breakout areas, collaboration spaces, quiet spaces and recreational areas help improve the mental health and productivity of the employees as well.

How is 91Squarefeet as a brand expanding and gaining attention in other sectors of the market?

91Squarefeet has made conscious efforts to expand its footprint across the country. We have been a leading fit-out partner for retail stores across India with projects in over 230 cities. We are currently focusing on workplace designs by providing a 360-degree offering to our clients, from leasing, designing, building and project financing.