Corporate Real Estate (CRE) will have to keep an eagle’s eye on the emerging technologies that are constantly altering market needs. The workplace is undergoing fast-paced changes. In the wake of Automation and Artificial Intelligence (AI), the work volume is getting crunched and trends indicate that the number of workers in the IT sector will come down by 20%. A recent survey by global research firm Jones Lang LaSalle (JLL) indicates that there is demand for incorporating AI into business courses from as many as 85% of the CEOs.
Ramesh Nair, CEO and India Head of JLL, says that future workplaces will be incubators and centres of excellence and see virtual collaboration. He foresees lot more talent being attracted by online platforms, and autonomous and freelance experts taking sizeable share in the future workplace. The future worker will work from any place, anytime and on any device, but will be more focused on outcome and output. There will be more women and learning will not be restricted for a few but will be for all.
Volatility
The JLL survey anticipates more volatility in CRE as 82% of CEOs globally are concerned about the uncertain economic growth. 74 per cent of CEOs report geo-political uncertainty as the major threat to businesses. The increasing trend of cybercrime is likely to cause damage to the tune of $6 trillion annually by 2021.
According to Abhinav Joshi, Head of Research, CBRE, last year the nation witnessed a record 550 million sq. ft. of construction. Of this 45 mn. sq. ft. went for commercial absorption which was also a record. He, however says, in the current year, the commercial absorption will be around 40 mn. sq. ft. He told participants at the 4th India conference of CoreNet held at Bengaluru on June 21 that 30% of the CRE in IT sector is directly dependent upon American companies which will be impacted by changing policies with the new incumbent in the White House.
IT sector shrinking
Joshi says the IT sector is facing problems but the start-up sector may be coming up soon and he expects its requirement may be of the order 1.5 mn. sq. ft. He foresees IT/ITES sector shrinking by 35% but manufacturing, consulting and banking expanding their footprints. Six to eight Chinese construction companies were studying Indian realty and their entry was imminent. There was consensus that Hyderabad was the sunshine market currently.
Era of start-ups
Sanjeev Sethi, Director Global Workplace Solutions, Adobe Systems India, says two to three start-ups are entering the market everyday now and there will be around 4,000 start-ups by the end of four years from now. A lot of them will be employing new millennials (generation of people who were born into the new century) who will be working while sitting, standing, or half lying on the floor at work locations. The companies will need to study their working behaviour for two to three years as to what spaces they would need and feel comfortable with.
Ergonomics
Venu V. Kota, Co-Chairman, CoreNet Global India, too feels that the CRE will need to look into working spaces as ergonomics has gained new focus. Earlier, companies used to go hunting for talent, but now talented personnel choose companies where there is a learning atmosphere. He says computerisation and digitisation has crunched space. “Budgets used to be in files earlier, then in Xcel sheets. Now they can be accessed with mobiles. Facility managers move with tabs.”
He says companies are now spending on employees’ well-being in multiple ways. Referring to ‘Floats’ manufactured by a U.S. company (Humanscale), he says, it has designed furniture that adjust to people working either sitting, standing or in any other posture. This revolutionary furniture takes cognisance of comfort of worker and ease of doing work from all angles. Sanjay Virwani, Director, ‘Wework’, says, in view of the nation’s younger workforce (800 million being under 25 years of age), workspaces will need to look for more interaction and co-working.
‘Gigantism’
Journalist Shekhar Gupta, former Editor, Indian Express, in his keynote address said major infrastructure projects will be coming up as Prime Minister Modi believes in ‘gigantism’. He exhorted the participants to keep an eye on the railways, ports, airports and coastal roads which may undertake huge expansion work. He foresaw more cities having Metro networks and more cities being included under ‘Smart City’ category.
