Why managed office space growth seems unstoppable in the office segment

financialexpress.com:

Recent reports from multiple real estate consultancy firms have highlighted a consistent trend in the office market – the increasing popularity of flexible and managed office spaces. These reports unanimously indicate a significant growth in the leasing of flex space. For instance, according to Q2 2023 (calendar year) office market report by Colliers—Leasing by flex spaces surged 58% YoY during the quarter, as occupiers continued to adopt flex spaces as a long-term strategy.

The requirement towards the flexible space segment continues to grow in 2023, as ‘core + flex’ approach is at the forefront for all office stakeholders. As per the latest CBRE research report, flexible office spaces have emerged as top short-term real estate portfolio strategy for corporates as about 47% of them intend to increase the use of flexible office space over the next 12 months in India.

Occupiers have placed a stronger focus on transforming the workplace and enhancing the employee experience in order to attract a higher number of employees back to the office.

Corporate occupiers are actively seeking to optimize their portfolios and prioritize cost-effective strategies. The availability of flexible lease options and low upfront costs has propelled the concept of Managed Office spaces, making them an attractive and financially advantageous choice for companies looking for workspace solutions.

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One of the key driving forces behind the growing demand for managed office spaces is the need for agility and flexibility in today’s business landscape. Traditional office leases often involve long-term commitments, inflexible terms, and significant upfront costs.