The flexible space segment has witnessed stellar growth in India in the past few years, disrupting existing business models and creating new opportunities. CBRE Research is starting a new quarterly series covering broad trends in this segment. This is the first report in this series.
- Space take-up in this segment witnessed a 70% increase on a quarterly basis, to reach 2.9 mn sft by the end of Q1 2019.
- Bangalore and Delhi-NCR were the most preferred markets for flexible space operators in India, accounting for more than half of leasing in the country in Q1 2019.
- Hybrid and managed spaces drove flexible space take up, commanding shares of 46% and 36% respectively.
- Looking ahead, CBRE expects established corporates to continue to take up larger number of seats as compared to start-ups. Developers would emphasise on maintaining healthy levels of occupancy rates, providing customized services and incorporating tech for enterprise solutions.