New Delhi, May 16 (IANS) Small office occupiers incurred the highest facilities management (FM) costs per sq ft while large office campuses benefitted substantially from scale efficiencies, centralised operations and integrated workplace infrastructure, a report said on Saturday.

The report from Knight Frank India found Mumbai, Bengaluru and Gurugram as the highest-cost office markets across small office categories, due to premium Grade A office ecosystems, higher workforce costs and greater demand for integrated workplace management services.

Pune and Kolkata emerged as the most cost-efficient markets for small office occupiers, with FM costs ranging between Rs 21.13–24.55 per sq ft across operational formats.

Overall, small office occupiers continue to face the highest facilities management costs across all major office markets due to limited scale efficiencies and higher manpower intensity per sq ft, the report noted.

These office formats typically include startup hubs, boutique corporate offices, flex space occupiers and regional business units.

The report highlighted that the operating formats also play a significant role in determining workplace management costs, with 24×7 operations consistently commanding a premium over conventional 12-hour, 5-day operating models due to higher manpower deployment, engineering support and round-the-clock security requirements.

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

“The analysis also reflects the premium associated with gateway office markets such as Mumbai, Bengaluru and Gurugram, where higher workforce costs and demand for sophisticated workplace management solutions continue to drive operational expenditure,” Koyal added.

Within 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, rising 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 across segments at 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 comparatively elevated across major gateway cities, averaging between Rs 3.40–3.65 per sq ft, reflecting higher guard deployment ratios, visitor management requirements and compliance-led workplace protocols.

—IANS

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