PRR will spur demand for office spaces

PRR will spur demand for office spaces
Connectivity to the city centre and mixed land use will translate into higher demand for office spaces. Sai Prasanna elaborates


The first phase of the proposed Peripheral Ring Road (PRR) will see areas in the north (around Tumkur Road) connected to the south (near Hosur Road). This connectivity is expected to spur demand for office space around areas close to the PRR. According to B N Satish, Director (occupier services), DTZ, the potential areas around the proposed PRR for commercial development would be more towards northern and eastern parts of Bangalore.
This belt is coming up as a 'growth corridor'. These parts have good connectivity to the international airport and also to various parts of the city. The localities with demand for more office spaces are Sarjapur-Outer Ring Road, Hebbal-Outer Ring Road, Bellary Road, Hosur Road (near Electronic City), and Whitefield - EPIP Zone.
Another reason for the emergence of these areas as a good potential for commercial development is the proximity to the Outer Ring Road (ORR). Since the proposed PRR will circumnavigate the ORR at a distance of 2.8 km to 11.50 km, developers will not find it a hindrance to locate their offices and commercial spaces here. Also, this will lessen traffic pressure and congestion on the ORR.
Many retail developments are also being planned in close proximity to the PRR in Hebbal, Varthur (near Whitefield), Whitefield, and Mysore Road (close to the second phase of the PRR). Most of them are under construction and will be opened when the first phase of the PRR is expected to be completed. This is expected to spur residential development in the area also leading to the demand for more office spaces, with companies considering the travel time for employees and proximity to the workplace significant.
Also, mixed land use is being applied in areas having large plots of land - 20, 50, or 100 acres towards Old Madras Road, Hoskote, Bannerghatta Road, and towards Mysore Road. These are being developed by private developers with offices, commercial, residential, retail, and entertainment spaces.
Upcoming residential projects nearby like the five BDA layouts, integrated townships planned by the Bangalore Metropolitan Region Development Authority (BMRDA) in Solur and Bidadi, and SEZs like the Nandagudi SEZ, will see greater demand for office spaces in areas around.
Many companies have also taken the approach to consolidate their numerous operations into one facility after realising the complexity in managing different facilities and also due to cost enhancement. This move is mainly due to high cost of occupation in the central areas, lack of large contiguous space options, weak expansion possibilities, traffic congestion in the city etc.
As of now developers have plans for some built-to-suit developments. But the leasing interest/activity would commence once the work on the PRR reaches at least 50 percent. Firms who have plans for large space consolidation by getting into campus-style developments will move to these locations.