Corporates to further expand flexible office space portfolio by 2026: CBRE

Corporations increasingly prioritize flexibility, leading to a significant rise in adopting flexible workspaces in India, according to CBRE South Asia Pvt. Ltd's '2024 India Office Occupier Survey, the proportion of companies allocating over 10% of their office portfolio to flexible workspace is expected to increase from 42% in the first quarter of 2024 to 58% by 2026. This trend reflects a growing preference among domestic occupiers for agile office solutions compared to their American counterparts. Chairman & CEO of CBRE India, Southeast Asia, Middle East & Africa, Mr. Anshuman Magazine, highlighted a surge in occupier activity driven by heightened confidence and increased demand for high-quality office spaces. The market momentum is further fuelled by pent-up demand from businesses that postponed leasing decisions during the pandemic.

Over the past 5 years, flexible space operators have gained prominence, securing more than 15% of quarterly leasing. CBRE forecasts the flexible space stock to reach 80 million sq. ft. by the end of 2024, aligning with the rising demand for adaptable workplace environments. The survey also reveals that occupiers plan to expand their presence across multiple office locations to accommodate growing workforces and explore new markets. Around 17% of occupiers are optimizing their office portfolios for greater efficiency gains. Managing Director at CBRE India, Mr. Ram Chandnani, emphasized a shift towards 'office-first' policies, signalling a resurgence in in-office attendance and a renewed emphasis on enhancing employee experiences and workplace dynamics.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.