Shop-Cum-Offices: The Next Big Thing in Combining Retail and Office Environments

By:  Harpreet Singh Hora, Group Director, Reach Group

The Indian real estate industry is the fastest-growing and most preferred sector for investment options, owing to its promising returns and long-term security assurance. Notably, the commercial real estate sector has significantly boosted in recent years in NCR, bringing a new trend in the market: SCO (shopping-cum-office) complexes. Shop-Cum-Offices are a perfect unification of retail and office spaces strategically designed to cater to businesses requiring a storefront and an office space. These hybrid structures have recreational facilities and food zones, serving the modern demand for convenience and multi-functionality. Hence, as the business landscape transforms, so does the demand for these innovative spaces.

Industry experts suggest that the rise of Shop-Cum-Offices has changed the dynamics of the commercial real estate market, which is expected to clock 7-8 % growth in 2024. A report by Knight Frank highlights a significant 44% year-over-year increase in office space leasing across eight major cities, underscoring the growing appeal of the SCO model.

Shop-Cum-Offices have witnessed a rising popularity, leading to an influx in the demand for such spaces. One of the main drivers behind this surge is the unmatched flexibility and convenience that SCOs provide. They allow entrepreneurs and businesses to customize their space to meet their changing needs. This adaptability allows businesses to expand and evolve without the hassle of frequent relocations. Another prominent reason for SCO’s popularity is its cost-efficient nature. By combining retail and office functions within a single space, SCOs significantly reduce the cost of leasing and maintaining separate properties. 

What has further added to the SCO’s allure is its strategic location and accessibility. SCOs in prime locations with excellent connectivity and accessibility ensure businesses can attract a steady stream of customers and clients. Furthermore, the presence of essential infrastructure such as transportation hubs, parking facilities, and social amenities enhances the overall appeal of SCOs.

As new businesses emerge and existing ones expand, the need for versatile office spaces and retail outlets continues to grow in the National Capital Region (NCR) and its surrounding areas, especially Gurugram. Restaurants, cafes, entertainment zones, and even co-working spaces are becoming increasingly common in the city, creating a diverse mix of day and evening activities. The city’s commercial real estate market is booming, leading sub-regions like Sector 114 to emerge as prime destinations for SCO development. Primarily focused on retail, followed by office spaces, the sector emerges as an ideal location for businesses looking to capitalize on the growing consumer base. Due to its excellent connectivity, strategic location, and world-class infrastructure, it is an ideal location for businesses looking to establish their presence in NCR. 

The sector is well-connected to other parts of Gurugram and the Delhi-NCR region, with the Dwarka Expressway and NH-48 providing easy access to Indira Gandhi International Airport and the Delhi-Jaipur highway, respectively. The Delhi-Mumbai Industrial Corridor (DMIC) further enhances connectivity, making it easier for businesses to access key markets across India. With the increased establishment of businesses in the region, the demand for SCOs enhances further, catering to the businesses looking to set up shops in the area. 

The concept of Shop-Cum-Offices is revolutionizing the commercial real estate landscape, offering businesses the flexibility, cost efficiency, and synergy they need to succeed. Sector 114 emerges as a prime destination that embodies the advantages of SCOs, providing a strategic location, modern infrastructure, and a thriving business ecosystem. As businesses continue to seek innovative spaces that cater to their evolving needs, Sector 114 stands out as a beacon of opportunity, poised to become a hub of commercial activity and growth. 

** Views expressed in this article are author’s personal and do not reflect the opinion ‘Realty & More’.