• Originating as a shared service for start-ups, flexible spaces (co-working, business centers, hybrid spaces, amongst others) are now also being utilized by larger / established corporates to have agile portfolios in a dynamic business environment.
     
  • The overall flexible space stock in India has increased by about 50%, from 10 million sq. ft. in 2017 to about 15 million sq. ft. by Q3 2018; positioning it amongst the largest flexible space markets in the entire APAC region. This is almost 2.7% of the overall commercial office stock of India.
     
  • CBRE expects space take-up from flexible space operators to rise from about 5.4 million sq. ft. in 2018 to about 7-9 million sq. ft. by 2020.
     
  • In Q3 2018, CBRE’s Research and A&T Occupier Group conducted a survey of leading occupants of flexible spaces in India; comprising both established corporates and start-ups.  
    • Cost, data / client security emerged as the biggest challenges; on a positive note, almost 50% of the respondents reported an increase in employee productivity and collaboration after using flexible spaces.
       
    • Occupants increasingly prefer tailored offerings; more than 60% of the respondents preferred ‘private spaces’ over hot / flexible desks or fixed open seating.