Reimagination of workplace across different economic sectors such as technology, engineering manufacturing and BFSI has driven a new age in Indian office market. The report titled “Flex Spaces-Reshaping the New-Age of India Office Market” highlights that flex space adoption to be grow at an accelerated pace converting it from a niche market to mainstream phenomenon.

The survey collected roughly 100 responses from senior management personnel and drew inferences from those responses and further collated them with the broader industry trends. The report highlights that 81 per cent occupiers to increase their office portfolios through the adoption of flex spaces in the next few years. The expansion through flex spaces to be highest in Technology, Engineering, Manufacturing and Healthcare sectors. The report outlines that increase adoption of the flex space benefited employers and employee alike. It fosters collaboration, innovation, wellbeing and sustainability providing a much-needed place for employees to come together.

The overall acceptance to flex spaces by occupiers has been driven by “flight to quality”. Around 60 per cent of occupiers feel flex spaces are complementing real estate requirements, increasing flexibility and scalability of operations. Considering both cost- arbitrage and enterprise-level offerings around 40 per cent of occupiers see flex spaces as centers of their core operations.

"With flex space offerings transforming from niche to mainstream, they are expected to increasingly define the contours of Grade A office space demand in India. As per the report, 60% occupiers are likely to have a flex share of 20% or more in their office portfolio over the course of next 3-5 years, up from the present 40%. Earlier flex spaces were predominantly occupied by start-ups. However, over the next few years, more than two-thirds of real estate expansion across occupier segments will be through flex spaces. Notably, over 80% of the expansion in technology, engineering & manufacturing and healthcare sectors, would be through flex spaces," says Arpit Mehrotra, Managing Director, Office services, Colliers India.

Key highlights of the Survey findings

• Over 60 per cent of occupiers will have 20 per cent share of the flex spaces.
• Technology sector to be the largest adopter.
• More than half of small and large sized occupiers and more than two thirds of the mid-sized occupiers are likely to adopt flex spaces in the next 3-5 years.
• More than 1/3^rd of the flex space functions as core business centers.
• 77 per cent of occupiers view prefer longer lease period of more than 1 year.
• Around 45 per cent of occupiers prefer core areas of major cities for expansion.
• Average lease tenures will reach close to 3 years.

Location is the topmost priority for the occupiers while opting for a flex space. Approximately 60 per cent occupiers consider it to be the most important parameter. This is followed by office layout, tech-integrated workspaces, wellness amenities and sustainable features. 61 per cent of the technology sector respondents seek work environment with integration of AI, cloud computing, machine learning and tech enabled designs. About half of the large companies GCCs and MNCs envisage flex spaces to act as a hub and a spoke office whereas 42 per cent of the smaller firms including startups see flex spaces as their primary office space.