In its latest research on the Indian retail real estate sector, leading international property consultancy JLL India introduces and analyses the concept, character and status of one of most interesting new retail real estate formats – the Office-Retail Complex (ORC).
Over the last two decades, we have seen emergence of several new business districts in tier-I cities. This trend started when the cities were expanding rapidly and their conventional Central Business Districts (CBDs) had become saturated or did not serve the needs of corporate occupiers.
Pankaj Renjhen, Managing Director – Retail Services, JLL India says, “As the work culture evolves, the need to have a robust retail presence is also felt more strongly than ever before. This has led to the emergence of a new format of retail in such office agglomerations, or Office-Retail Complexes (ORCs). As India increasingly integrates into the global economy and the number of expats living in cities like Delhi-NCR, Mumbai and Bangalore increase, a business district remains incomplete without certain retail segments.”
Today, the success of a business district not only depends on its office rentals and physical infrastructure but also on a robust social infrastructure for the time-conscious office-goer. When there is a captive consumer base for retail, how can the dynamic retail sector be far behind?
Bandra-Kurla Complex and Gurgaon have not only become the de-facto CBDs in Mumbai and NCR respectively, but they are also attracting more retail. In Bangalore, taking up space in commercial office buildings in the city centre makes perfect business sense for retailers, as they not only cater to the shoppers but also make huge rental savings by opting for ORC formats over the high streets.
Going forward, the appeal of these office districts in the eyes of multinationals and premier domestic companies will be enhanced to some extent by the presence of retail.
Ever curious and agile, the retail sector is now making inroads into modern office agglomerations. Though the format of ORCs is currently a phenomenon seen only in the major tier-I cities of India, we could soon witness the concept mushrooming in other cities as well, given its relevance and the immense benefits it offers to retailers and the corporate crowd.