India’s only home-grown ‘premium managed office space’ provider Skootr, recently announced the launch of its revolutionary ‘Reverse Office’ model for enterprises looking at optimizing their current real estate portfolio.
With the launch of this model, Skootr has become the first flexible workspace operator in India to offer a path-breaking solution in optimizing the occupied real estate in the office sector.
The unprecedented disruption and revenue loss inflicted by a never-seen-before biological threat in the shape of COVID-19 has forced many organizations across the globe to rethink their workspace requirements and the costs incurred in non-core business activities.
The many challenges that concern enterprises right now include workforce restructuring, wanting to cut down on heavy rentals but stuck in lock-in periods with developers at expensive properties, maintaining business continuity as the number of employees operating remotely rise, wanting to save overhead costs of administration and maintenance, redundancies due to under-utilization or poor management of asset, and looking for better flexibility in terms of commitment when making shifts during this transitional phase. As worrisome and troubled the times are, the current situation calls for an innovative solution that can help enterprises maintain financial agility while reducing overhead costs.
Commenting on the launch, Puneet Chandra, Co-founder and Director, Skootr Offices, said, “Re-thinking, re-engineering, and innovation has always been at the core of anything we do at Skootr. Our team brainstormed over the last couple of months to find solutions that can optimize the tremendous potential of the existing asset within the commercial real estate sector. With a change in the workforce dynamics due to the growing popularity of work-from-home, enterprises are looking at optimally utilizing the existing real estate with the restructured workforce. The ‘Reverse Office’ model offers them a unique solution to this complex requirement in a timely and cost-effective manner.”
Skootr’s Reverse Office marquee accommodates three different models,
Reverse with Anchor : Enterprises can maximize their returns on the existing lease by surrendering their entire portfolio to Skootr and signing a new lease which gives them the freedom and flexibility to twist their conventional lease and shift to a managed office lease. Under the new lease agreement, the enterprise gets to retain the office space they need from the entire area and the remaining space is subleased to other enterprises through Skootr. The entire process is complete in a stipulated time.
Consolidation: An ideal solution for large enterprises looking to consolidate offices spread across geography to accommodate the manpower at one place and save on the operational costs incurred with multiple locations. Skootr re-engineers a set of assets in an organization’s existing real estate portfolio to offer a consolidated solution that is tailor-made and adapted to a corporate’s requirement.
Reverse & Relocate: Enterprises looking at reducing their rental payments considerably by shifting their office to a nearby location with lesser rentals. With a huge chunk of the workforce operating remotely, enterprises are looking at optimizing the overhead expenses and costs associated with non-core business activity. The cost associated with office upkeep and rents can be saved with this model.
“We wanted to challenge the redundancies within the sector and find ways to offer better flexibility to enterprises as we steer through this global crisis. While conducting our market research, we realized that the Indian subcontinent accounts for a huge market for this model where a majority of Grade A asset belongs to central business districts, a niche in which Skootr operates. In the current times, we feel it is pivotal for flexible workspace providers to analyze and reflect on what the enterprises actually need, create mutually-benefitting opportunities and then offer tailored solutions in conjunction to those needs,” adds Chandra.
Reverse Office by Skootr, presents an unconventional way of looking at leases in the office sector and offers a win-win solution for all stakeholders. Developers get a sense of assurance from a consistent flow of rental income, better tenancy ratio, saved costs on property maintenance, layouts and restructuring of assets while exercising control over the portfolio. Enterprises save anywhere between 20% to 50% of maintenance and administration costs based on surrendered area, optimized rentals while enjoying the flexibility to scale up and take smaller portions of real estate within the same vicinity as and when required.
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