Shifting demands in office leasing

Traditionally, the mantra in office real estate has been "location, location, location." However, by the 2030s, India's workforce will have a median age of just 28, challenging this long-standing belief. The increasingly millennial-dominated workforce brings with it a fresh perspective on work-life balance and workplace expectations that diverge significantly from preceding generations. What’s at the heart of this shift? Amenities.

Urbanisation in India is no longer just about its Tier 1 cities. While metros have long been the hubs of commercial activity, Tier 2 cities are experiencing rapid urbanisation. Net migration to these cities has spurred extensive construction, dramatically changing the physical and social landscape. 

This urban transition has been paralleled by a shift in workforce demographics. A younger, highly-educated, and globally-influenced group is flocking to these cities, and they bring with them new expectations for their professional environments. They are not merely looking for places to work, they are looking for spaces that reflect their lifestyles. This growing demand presents a significant opportunity for businesses and developers to reshape office spaces in these emerging urban centres.

This rise of a youthful, educated workforce brings with it an evolution in workplace expectations. India’s millennial workforce is more digitally connected, socially aware, and aspirational. This workforce seeks far more from their workplaces than just a desk and a laptop. They desire environments that foster creativity, collaboration, and personal well-being. The workforce of today places high value on proximity to key urban centres, social infrastructure along with what is within the office itself.

This change in priorities is reshaping office leasing and development across the country. The young professionals who will drive India’s economic growth expect workspaces that are not just functional but designed to enhance their overall experience and organisations will have to meet these needs.

While proximity to social infrastructure remains important, we're seeing a marked shift within companies towards prioritising amenities within the office property itself. Where once proximity to retail, food, and entertainment options sufficed, companies today look at ways to integrate those same experiences into the daily work environment. Many offices today come with spaces for features such as on-site crèches, break rooms with healthy food options, and outdoor spaces. These are no longer luxuries but necessities for attracting and retaining top talent.

According to the Rise of Global Capacities Centres in India report, amenities like outdoor spaces, wellness rooms, and healthy dining options, which were once considered luxuries, are now seen as priorities. This shift underscores a broader transformation in how office buildings are being designed and utilised.

The workforce and thereby organisations are also demanding more from the office space in terms of design aesthetics and sustainability. The workforce now wants to function from a modern office space that blends design with functionality. Gone are the days when a green rating for a building alone could secure tenants. As Rahul Arora, Head of Office Leasing & Retail Services at JLL India, recently pointed out: “Older buildings, despite being green-rated, have shown occupier exits between 2021 and March 2024, signalling that while green ratings are critical, they are not the sole determining factor. Building quality, finishes, and amenities are equally relevant.”

Companies around the world are seeking to reinvigorate their environs by choosing office spaces that are not just utility-led, but purpose driven. Smartly designed office spaces with astutely-marshalled amenities can raise a worker’s sense of well-being, leading to a rise in productivity. It’s no longer just a space for work: it’s a space for creativity, collaboration, and growth. A destination that inspires, engages, and supports employees. Leasing the right space becomes the cornerstone when companies plan to build these dynamic, employee-centric environments. The right space gives them the flexibility to provide for diverse work styles, foster innovation, and cultivate a strong company culture.

Identifying the right mix of amenities for any office space requires more than just trend analysis; it demands an in-depth understanding of the company’s needs, the local real estate market, and the shifting preferences of the workforce. This is where our expertise comes into play.

With a deep understanding of office market trends and insights, we have partnered with several companies to find offices that are tailored to their needs. Our proprietary tool, MapIT, provides detailed insights into location viability, employee demographics, and transit patterns, ensuring that every office space we recommend is perfectly aligned with both your company's goals, and your employee demands.

Ready to locate your office for the future? Let's connect and explore how we can help you find a workplace that truly works for you and your team.