During this period, Bangalore accounted for almost 30% of the leasing by flexible space operator, said a recent report from CBRE.
BENGALURU: The need for workspace efficiency and a collaborative work environment has increased demand for flexible office space for the first half of 2019.
The overall flexible space take-up in India reached about 4.6 million sq. ft in H1 2019, up 52% over the same period last year. During this period, Bangalore accounted for almost 30% of the leasing by flexible space operator, said a recent report from CBRE.
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This is primarily a result of established corporates leasing large-sized spaces in recent times, in order to provide ‘free addressing’ options as well as improve the agility of their RE portfolios.
“India is currently one of the leading flexible space markets in APAC and we expect increasing investments in this segment going forward. Office stock is expected to grow from 600 mn sq. ft. in mid-2019 to a billion sq. ft. by end of 2030 and flexible space will comprise 8-10% of the total office stock,” said Anshuman Magazine, Chairman and CEO, India, South East Asia, Middle East and Africa, CBRE.
op cities driving the demand are Delhi-NCR, Bangalore and Mumbai. The number of small- to medium-sized deals of 20,000 – 100,000 sq. ft rose from 52% in H1 2018 to 61% in H1 2019. Moreover, the number of large-sized deals exceeding 100,000 sq. ft increased from 6% to 13% y-o-y in H1 2019.
“Customized enterprise solutions provided by operators offer a competitive advantage as well as enable them to retain tenants for a longer-term. This is expected to continue to attract established corporates towards the flexible space segment,” said Ram Chandnani, Managing Director, Advisory and Transaction Services India, CBRE.
Operators have also turned their focus from the top seven cities to tier-II cities such as Jaipur, Goa, Chandigarh and Lucknow in the past few quarters.
“Most of our matured centres are 95% occupied and the turnaround time has reduced from seven months to two months now, reflecting strong demand for flexible space,” said Neetish Sarda, Founder of Smartworks.
Flexible space stock crossed 23 million sq. ft. across leading cities in India during Q1 2019; this stock exceeded 18 million sq. ft of 2018CY mentioned the report.
Also, the continuously increasing demand for space in non-core micro-markets, coupled with paucity of space in core micro-markets, is likely to result in the flexible office space dominating leasing in the future. Additionally, the demand for managed office spaces will strengthen in the coming few quarters and become almost comparable to that of hybrid spaces.
Smartworks is India’s largest provider of agile workspaces, with a footprint of 2.8 million sq. ft. across 23 locations in 9 cities (Delhi NCR, Kolkata, Bengaluru, Mumbai, Hyderabad, Chennai, and Pune) catering to more than 600 organizations across large enterprises, SMEs and start-ups. Founded in April 2016, Smartworks is redefining the Indian office experience by focusing on design, hospitality, technology and customer delight experience. Smartworks is also the only Indian agile workspace provider to have become profitable in India.
Central to this ambition is the company’s motto, ‘Workspaces that work for you’, with the vision of creating the perfect environment by just not building communities, but also ensuring their member employees are productive in the workplace.
For more information, log in to www.smartworksoffice.com