The report says 50% of Chennai’s office real estate market inventory has potential for upgrading.

A report released by real estate consulting firm CBRE South Asia Pvt CBRE South Asia Pvt said the Chennai office real estate market has provided a significant value-added opportunity through strategic upgrades to 5.2-5.7 billion square feet of the 89 million square feet office stock holding upgrade potential in the city. Limited

According to the report “From Existing to Anomalies: Strategic Approach to Renovating Indian Office Spaces”, most of the time is concentrated in submarkets in OMR District 1, OMR District 2, Poonamallee High Road and specific areas indicating modernization efforts, which can make the most impact.

Estimated assets provide opportunities to generate up to 20% of rental premiums. It said the rental premiums that can be realized after the upgrade may vary by these micro-market markets.

The potential investment opportunities in the city are estimated at Rs 39-66 crore. By focusing on upgrading these assets, developers and investors can take advantage of the demand for modern spaces and potentially achieve attractive rental increases, especially in more promising micro-markets. According to the report, this strategic approach to transformation can enhance the overall competitiveness and attractiveness of the Chennai office market.

“India’s office real estate sector is undergoing a significant transformation and Chennai is becoming a crucial driver of this evolution. A large portion of the city’s existing existing office inventory exceeds 50% of its 89 million square feet, which has been identified as necessary upgrades.

He added that the program’s expansion goes beyond just adding value, a key step in aligning office space with global benchmarks for the integration of sustainability, health and technology.