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Connectivity Becomes a Core Driver of Office Space Decisions as Occupiers Look Beyond Rent

Connectivity Becomes a Core Driver of Office Space Decisions as Occupiers Look Beyond Rent

Nearly 70% of companies now consider commute and connectivity critical when selecting commercial space. Around 18% are willing to pay a premium for better public transport. Air quality, water and sanitation also influence workplace decisions as infrastructure increasingly shapes office demand across India’s commercial real estate and flexible workspace markets.

The traditional office search, built around rent, location and building quality, is taking a wider view. Nearly 70% of office occupiers now consider employee travel time an important factor when selecting commercial space. At the same time, the same proportion identifies commute and connectivity as among the most crucial considerations within a city, according to CBRE South Asia’s latest report, Commute Counts, part of its Inside the Occupier Mind series.

The shift is also affecting what companies are willing to pay. About 18% of occupiers surveyed said they would accept a premium for office assets with better public transport access. For landlords, developers and flexible workspace operators, this signals that connectivity is increasingly becoming part of the value proposition alongside amenities, building quality and commercial terms.

Infrastructure Is Becoming a Real Estate Factor

The focus extends beyond simply reaching the office. CBRE found that 50% of occupiers view poor air quality and AQI levels as a major infrastructure threat to business operations and employee experience. Water availability and quality were concerns for 31%, while 29% pointed to waste management and sanitation challenges that could affect workplace productivity.

“As India’s cities grow denser and commutes grow longer, occupiers are effectively counting it in their leases,” said Anshuman Magazine, chairman and CEO – India, South-East Asia, Middle East & Africa, CBRE. He added that infrastructure access now sits at the centre of corporate location decisions, making connectivity investment increasingly linked to commercial real estate value.

Transit Access Could Reshape Leasing Corridors

The findings come as major Indian cities expand their transport networks. In Mumbai, the planned completion of Metro Lines 2B, 4 and 6 by 2027 is expected to strengthen connectivity across key commercial corridors, including Worli, BKC and Powai.

In Delhi-NCR, the upcoming Golden Line between Aerocity and Tughlakabad, targeted for 2027, and the proposed Yamuna Pushta elevated expressway bypass to Jewar Airport are expected to improve access to emerging business locations. Such projects could influence how occupiers assess office clusters, particularly when access to talent and commute times are central to workforce strategy.

Flexible Workspaces Face a New Location Test

The infrastructure-led shift is particularly relevant to flexible office providers and Global Capability Centres (GCCs), which often compete for talent across multiple submarkets. Chennai’s six-lane greenfield Peripheral Ring Road, scheduled for completion by the end of 2026, along with Pune’s runway extension and the development of Purandar Airport, could open new cost-effective locations for technology-led occupiers.

“Commute has moved from being a convenience factor to a non-negotiable one,” said Ram Chandnani, Managing Director, Leasing Services, India, CBRE. “Occupiers are telling us clearly that access to transit, talent, and reliable last-mile connectivity now shapes real estate decisions as much as rent or location prestige.”

For the flexible workspace sector, the implications are significant: a well-connected location can influence occupancy, employee experience, and leasing demand. As Indian cities become denser, office real estate is increasingly being evaluated not just by what exists inside the building, but by how easily people can reach it and how effectively the surrounding infrastructure supports everyday work.

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