Indian corporates are fast embracing flexible workspace which now accounts for 10-12 per cent of their real estate portfolio compared to 5-8 per cent pre-COVID pandemic, according to Colliers.
Real estate consultant Colliers has recently released a report 'Global Occupier Outlook 2023' that revealed that many corporates in Asia Pacific are deferring decisions on taking office space on lease as they are grappling with the complexities of the hybrid work model.
"The lack of clarity and macroeconomic uncertainty are posing challenges for businesses in projecting their space requirements," it added.
According to Colliers' experts, companies are facing the dilemma of striking a balance between providing employees with desired flexibility and realigning their portfolios for the next evolution of the workplace.
However, Colliers said that Indian office space occupiers have been quick to adopt flex spaces, attracted by the flexibility, agility, and cost-effectiveness.
"Flex spaces are becoming an integral part of occupiers' portfolio, with its share in occupiers' total portfolio rising to 10-12 per cent in 2023, from 5-8 per cent before the pandemic in 2019, as per interactions with industry experts," the consultant said.
Going forward, Colliers said that flex spaces will continue to see strong growth.
Flexible workspace continue to support occupiers in realigning their portfolios and space considerations to suit a hybrid working style.
Peush Jain, Managing Director, Office Services, India, said, "Flex spaces have emerged as a core strategy for occupiers to adopt a decentralised workspace model, serving as a promising alternative to the traditional paradigm."
As compared to shorter lease tenures of 1-2 years pre-pandemic, occupiers are now going for longer commitments of 3-5 years with flex space operators as they look to integrate flex space as a long-term solution.
During 2022, leasing of office space by flex space operators touched record 7 million square feet across top 6 cities.
Across the APAC region, Colliers said that occupiers are keen on realigning their office portfolios to meet business needs while providing the flexibility employees desire.
The right real estate portfolio is key to keeping culture intact, attracting and retaining best talent, and controlling operational costs, it added.
WeWork India, Smartworks, Simpliwork Offices, Awfis, Skootr, The Executive Centre, Urban Vault, IndiQube, 91Springboard, 315Work Avenue, Akasa Coworking, The Office Pass, Avanta India, and BHIVE Workspace are major players that provide co-working/managed office space.
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