With limited availability and high demand for high-quality office spaces in the city bringing about the lowest vacancy rates in three years and steadily increasing rents, Pune is facing a commercial real estate supply crunch. The market is opting for solutions ranging from converting the non-performing retail and hospitality space into offices, refurbishing of failed malls, tenants pre-committing to space under construction or opting for commissioning of build-to-suit construction. Office space demand in Pune is strong, but handicapped because of supply issues. Pune’s office space supply crisis will result in the opening up of new commercial areas – and solve the problem of failed malls at the same time, says JLL India.
“Most of the upcoming large projects are in the initial construction stages and may take between 18-36 months to complete. A short-term option to induce faster supply is to revive under- or non-performing commercial buildings in the retail or hospitality segment and converting them into office spaces. In fact, the market is heading towards both these directions to reduce the demand-supply gap,” Alok Jha, AVP, Research JLL India, said.
Read more: The Financial Express
