India’s smaller office occupiers are paying sharply higher workplace management costs than large office campuses, with operational expenses in some cases rising nearly 89% higher due to the absence of scale efficiencies, according to a new assessment by Knight Frank India.

The report found that offices in the 30,000-50,000 sq. ft. category incur some of the highest Facilities Management (FM) costs across the country. In Mumbai, Bengaluru and Gurugram, these offices pay ₹27.65 per square feet for standard 12-hour operations and ₹29.65 per sq. Ft. for 24x7 operations.

In contrast, large office campuses spanning 300,000-500,000 sq. ft. in the same cities operate at significantly lower costs of ₹13.65 per sq. ft. for regular operations and ₹15.65 per sq. ft .for round-the-clock functioning, highlighting how scale, automation and centralised infrastructure are increasingly becoming decisive cost advantages in India’s commercial office market.

Small occupiers bear the heaviest burden

Knight Frank’s assessment covered office markets across Mumbai, Bengaluru, Gurugram, Chennai, Hyderabad, Ahmedabad, Pune and Kolkata, categorising occupiers into small, mid-sized and large office formats.

The report noted that smaller occupiers — including startups, boutique firms, flex-space operators and regional business units — face disproportionately higher manpower deployment and operational overheads per sq. ft. Security expenses for small offices in gateway cities remained elevated at ₹3.40-3.65 per sq. ft. because of higher guard deployment ratios, visitor management and compliance-led workplace protocols.

The trend extended beyond top metros. In Pune and Kolkata, smaller offices in the 30,000-50,000 sq ft category incurred FM costs of ₹22.89-24.55 per sq. ft., while large campuses between 300,000-500,000 sq. ft. operated at ₹11.30-12.96 per sq. ft.

Scale efficiencies reduce operational costs

Mid-sized offices between 50,000-100,000 sq.ft. showed relatively moderate costs as occupiers benefited from improved engineering efficiencies and optimised vendor deployment.

In Mumbai, Bengaluru and Gurugram, FM costs for mid-sized offices stood at ₹24.80 per sq. ft. for standard operations and ₹26.80 per sq. ft. for 24x7 operations. Chennai, Hyderabad and Ahmedabad emerged as comparatively economical markets, with costs at ₹22.82 per sq.  ft. for standard operations and ₹24.66 per sq. ft. for round-the-clock functioning.

The report said larger office campuses benefit from integrated building infrastructure, centralised command systems and automation-led efficiencies, enabling occupiers to lower operating costs despite higher compliance and workforce expenses in premium office markets.

Pawan Koyal, Executive Director and Head of Facility and Asset Management at Knight Frank India, said facilities management has evolved into a strategic business function as occupiers increasingly focus on operational continuity, workplace experience, sustainability and employee wellbeing.

He added that larger office campuses continue to benefit from integrated infrastructure and workforce optimisation, while smaller occupiers face comparatively higher per sq. ft. operational costs.