Apr 28, 2023

Plan Your Next Move: A Guide to Office Expansion in Tier 2 Cities

Office Spaces

“Only those who will risk going too far can possibly find out how far one can go.” - T. S. Eliot 

Commencing and expanding a business model in different regions is a significant milestone for an enterprise. Every business is unique and carries out different approaches to fulfill the desired objectives to cater to diverse audiences. In the past few years, the authorities have taken some commendable measures to empower these visionary and ambitious individuals and business enterprises.

We are aware of the benefits that Tier 1 cities offer to a wide range of business domains. But it is no surprise that businesses are showing keen interest in leasing modern-day office spaces in Tier-2 cities as well.

Initially, Tier 1 cities witnessed a massive transformation that helped in creating and supporting a delightful business environment. Today, Tier 2 cities are going through the same developments with the motive of magnifying the opportunities for business activities.

Many large and medium enterprises are showing interest in leasing managed office spaces in Tier 2 cities with the motive of maximizing the available opportunities.  

The future of work is constantly upgrading and the demand for flexible workspaces is gaining momentum in tier 2 cities. Many enterprises are focusing on expanding their business, optimizing cost, and attracting and retaining the best talents with flexible work options. With this ongoing transformation, these budding regions are recording excessive demands for managed/flexi/shared workspaces.  

Now moving further in this blog, we will state some of the reasons that captivate businesses to expand their model in Tier 2 cities. 

5 Reasons Behind Office Expansion in Tier 2 Cities

Many large metropolitan areas like Delhi-NCR, Bangalore, Mumbai, Chennai, Kolkata, Hyderabad, and Pune are indeed the most popular choices for managed offices. But that doesn’t impact Tier–2 cities like Ahmedabad, Jaipur, and Indore, because they’re packed with great opportunities for business expansion.  

If you’re planning to start or expand your business in Tier 2 cities, then it is a wise decision. Companies have become more intuitive toward flexible workspaces in Tier 2 cities. Why? Let’s find out. 

1. Cost-Effective 

2. Talented Pool of Potential Candidates 

3. Infrastructure Development 

4. Improved Standard of Living 

5. More Opportunities for Startups 

1. Cost-Effective 

Cost-Effectiveness is one of the major reasons behind office expansion in Tier 2 cities. The cost of real estate is generally low in Tier 2 cities if we compare the same to Tier 1 cities. Companies are more captivated by such factors because it allows them to expand their business model with reduced overheads, lower operational expenses, and increased profitability. 

2. Talented Pool of Potential Candidates

Tier 2 cities are gaining a tendency of producing and grooming educated, skilled, and competitive individuals. Expanding office portfolios in such cities allows businesses to tap into this diverse pool and find the best professionals at a relatively lower cost compared to tier 1 cities.

Companies that are based in multiple cities are often successful in implementing diversity and inclusion in the workplace with flexible work models. This also helps businesses to meet their manpower requirements and support and empower diverse skill sets to scale their operations efficiently. 

3. Infrastructure Development

As we said earlier, the future of work is growing and as a result of that, Tier-2 cities are witnessing rapid infrastructure transformation. Cities like Ahmedabad, Jaipur, and Indore are undergoing an expansion of commercial buildings, transportation facilities, networks, and enhanced connectivity. The motive is to provide top-notch facilities to large and medium enterprises so that they can work with the utmost efficiency. 

4. Improved Standard of Living

One of the main reasons behind the excessive demand for office spaces in Tier-2 cities is the enhanced living standard. Relatively affordable living costs, increased availability of healthcare facilities, a growing number of educational entities, and many other elements support the quality of life in Tier-2 cities. 

5. More Opportunities to Startups

Tier 2 cities are becoming increasingly attractive for large and medium business enterprises because of expanding markets and growing consumer base. But when we speak of the growing entities and startups, Tier 2 cities provide more support and opportunities to them.  

So, these are some of the major reasons behind office expansion in Tier 2 cities. Being India’s largest platform for managed office spaces, Smartworks is providing fully-furnished, tech-enabled, amenities-packed, and enterprise managed workspaces in Tier 2 cities. Some of our office spaces in Tier 2 cities are as follows: 

1. Ahmedabad – Venus Stratum  

2. Jaipur – Jaipur Centre

3. Indore – Brilliant Center 

In conclusion, Tier 2 cities are becoming a prime choice for businesses due to all the above-mentioned elements and factors. These cities often have a rising middle-class population with increased purchasing power and demand for goods and services. Expanding your office spaces in tier 2 cities will enhance the future of work, which will allow companies to penetrate these markets and establish their brand presence. 

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