Indian corporates are quick embracing versatile workspace which now accounts for 10-12% of their real estate portfolio in contrast with 5-8% pre-COVID pandemic, in accordance to Colliers.
Real estate advisor Colliers not too long ago launched a report ‘Global Occupier Outlook 2023’ that exposed that many corporates in Asia Pacific are deferring selections on taking workplace space on lease as they’re grappling with the complexities of the hybrid work mannequin.
“The lack of clarity and macroeconomic uncertainty are posing challenges for businesses in projecting their space requirements,” it added.
According to Colliers’ specialists, firms are dealing with the dilemma of placing a stability between offering workers with desired flexibility and realigning their portfolios for the following evolution of the office.
However, Colliers mentioned that Indian workplace space occupiers have been fast to undertake flex areas, attracted by the pliability, 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% in 2023, from 5-8% before the pandemic in 2019, as per interactions with industry experts,” the advisor mentioned.
Going ahead, Colliers mentioned that flex areas will proceed to see sturdy development.
Flexible workspace proceed to assist occupiers in realigning their portfolios and space concerns to go well with a hybrid working fashion.
Peush Jain, Managing Director, Office Services, India, mentioned, “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 in contrast to shorter lease tenures of 1-2 years pre-pandemic, occupiers are actually going for longer commitments of 3-5 years with flex space operators as they give the impression of being to combine flex space as a long-term resolution.
During 2022, leasing of workplace space by flex space operators touched report 7 million sq. toes throughout high 6 cities.
Across the APAC area, Colliers mentioned that occupiers are eager on realigning their workplace portfolios to meet enterprise wants whereas offering the pliability workers want.
The proper real estate portfolio is vital to preserving tradition intact, attracting and retaining greatest expertise, and controlling operational prices, 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 main gamers that present co-working/managed workplace space.
