Small office occupiers face higher facilities management (FM) costs per sq ft compared to large office campuses, which benefit from scale efficiencies and integrated infrastructure, according to a report by Knight Frank India. Mumbai, Bengaluru, and Gurugram are identified as the highest-cost office markets for small office categories due to premium Grade A office ecosystems and greater demand for workplace management services. In contrast, Pune and Kolkata are noted as the most cost-efficient markets for small office occupiers.
The report emphasizes that small office occupiers across major markets continue to bear the highest facilities management costs due to limited scale efficiencies and higher manpower intensity per sq ft. These office formats include startup hubs, boutique corporate offices, flex space occupiers, and regional business units. Operational formats, such as 24×7 operations, command a premium over conventional models due to higher manpower deployment, engineering support, and security requirements.
Pawan Koyal, Executive Director and Head of Facility and Asset Management at Knight Frank India, highlighted the evolving role of facilities management as a strategic business function. Occupiers are increasingly focusing on operational continuity, workplace experience, sustainability, and employee wellbeing. The analysis underscores the premium associated with gateway office markets like Mumbai, Bengaluru, and Gurugram, driven by higher workforce costs and demand for sophisticated workplace management solutions.
In the 10,000–30,000 sq ft category, FM costs in Mumbai, Bengaluru, and Gurugram were Rs 25.52 per sq ft for 12‑hour operations, increasing to Rs. 27.52 per sq ft for 24×7 operations. Similarly, offices in the 30,000–50,000 sq ft category recorded the highest operational costs, with INR 27.65 per sq ft for 12-hour operations and INR 29.65 per sq ft for 24×7 operations. Security costs for small offices remained relatively high in major gateway cities, averaging between Rs 3.40–3.65 per sq ft.
