Flex space operators’ office leasing demand in India more than doubled in Q1

These operators accounted for 13% of the total leasing volume during the quarter.

India’s office property market saw IT-BPM as the primary demand driver, accounting for a 22% share of the gross leasing volume, followed by Flexible Workspace Operators with a 13% share, according to data from Cushman and Wakefield.

The Engineering & Manufacturing and BFSI sectors contributed 11% each followed by Professional Services with a share of 10% in quarterly demand. 

Here’s more from Cushman and Wakefield:

Interestingly, leasing by flex space operators has more than doubled on an annual basis while engineering & manufacturing and BFSI sectors witnessed leasing growth of 42% and 65% respectively. The robust growth trajectory in flex seat leasing was maintained in Q1, in continuation of the trend witnessed last year. 

The quarter saw 23,111 seats leased by enterprises, higher than the quarterly average of 21,500 in 2021. Large global enterprises are driving demand for managed space solutions to mitigate business risks, reduce upfront CAPEX spending, enhance their focus on core business operations and ensure an office environment that facilitates employee engagement and productivity. 

In Q1 2022, Bengaluru accounted for around 50% of flex seats leased followed by Pune with a share of 15%. Robust fresh leasing and pre-commitments across a cross-section of industry categories highlight rising occupier confidence and positive business sentiments, and the value addition that Indian operations of multinationals deliver to the larger organisation.