Flexible office space providers see record demand in India
flexible office space in India are seeing demand outstrip supply as companies expand rapidly and adopt hybrid work models to offer better work-life balance.
In recent transactions, companies including Microsoft, EY, DE Shaw India, Coforge, Shell, Groww, and Air India have leased substantial office space through managed office providers to facilitate operational expansion.
In the period spanning Q1 to Q2, Google acquired 4,000 seats in Bengaluru, while Mastercard leased 1,000 seats in Navi Mumbai and EY secured 2,400 seats in Pune.
“The adoption of enterprise seats closely aligns with the widespread acceptance and adoption of the managed space and the overall flex model,” said Neetish Sarda, founder of Smartworks, a managed workspace provider. “We have around 8 million sq ft of space under management and are in the process of closing another million square feet spread across multiple geographies.
Managed space is more about integrating flexibility, aspirational amenities and cost savings into demand for flex workspace solutions, with enterprises preferring managed space solutions to achieve a better work-life balance.”
According to JLL, enterprises expanded their office space leasing activity significantly in FY23, going from 92,400 seats in FY22 to 139,000 seats across major cities in the country. The growth was particularly prominent in cities such as Bengaluru, Pune and Delhi NCR.
“The occupier-flex operator relationship is not limited to one centre but extends to current and future space planning,” said Sumit Lakhani, deputy CEO of Awfis Space Solutions.
