According to industry experts, single-owned office assets command higher rental rates compared to strata-owned properties in the Indian real estate market. Of the total 800 million square feet of office space available, less than a third is owned by a single entity. This indicates that single-ownership commercial buildings are in high demand due to their premium rental potential.
Tenants often choose single-owned assets because of the perceived advantages they offer. These properties are more likely to be maintained and managed by a professional entity, ensuring better overall upkeep and quality of services.
Additionally, tenants are attracted to single-ownership buildings as they usually have better amenities and facilities compared to strata-owned properties. These assets tend to offer a wider range of services, including security, parking, and common areas, enhancing the overall work environment for tenants.
The demand for single-owned office assets is driven by the recognition of the value they provide. Tenants are willing to pay a higher rental premium to secure these properties, as they understand the long-term benefits and potential return on investment.
The preference for single-ownership buildings also stems from the perspective of corporates and enterprises. Larger companies often seek office spaces that can accommodate their specific requirements and reflect their brand image. Single-owned assets offer the flexibility to customise the workspace according to the needs of the tenant, providing a more tailored and exclusive work environment.
Moreover, investors and developers recognize the attractive rental potential of single-ownership properties. These assets generate a consistent flow of income in the form of high rental rates, making them an appealing investment option in the real estate market.
However, the limited availability of single-owned office assets poses a challenge for tenants and investors. With less than a third of the office space falling under single-ownership, the demand often exceeds the supply. This leads to higher competition among tenants and potential buyers, driving up rental rates and property prices.
In conclusion, single-owned office assets are in high demand due to their premium rental potential. Tenants prefer these properties for their superior maintenance, amenities, and customization options. Additionally, investors recognize the attractive returns offered by single-ownership buildings. However, the limited supply of such properties poses challenges for the market, resulting in higher rental rates and property prices.
