Report | Adaptive Spaces
CBRE - The Future is Flexible
May 22, 2023
The need for agility is becoming greater than ever before, as workforce behaviors have been transformed during the pandemic. As occupiers plan real estate portfolios amid such uncertainty, the inclusion of flexible spaces in these strategies is becoming ever more important. In this report, we present CBRE’s take on how the flexible space segment is evolving in India.
- Flexible spaces in India continue to hold sway among corporates, with occupiers of all sizes increasing the percentage of flexible spaces in their real estate portfolios
- As companies aim to reduce costs, maintain proximity to their staff, and retain valuable employees by offering flexible work arrangements, the need for flexible spaces in Tier II cities is increasing
- The need to support hybrid and distributed working has replaced CapEx savings as the major demand driver for flexible office space
- As the flexible space segment continues to evolve to meet occupier requirements, operators and landlord-backed brands are focusing on providing premium service offerings, tech-enabled and fully customized private offices even as they formulate strategies for their own portfolio expansion
With an increase in quality investment-grade supply, we expect augmented demand for the sector in the coming quarters. We believe that product innovation and customized offerings by flexible space operators are growing, and we expect the popularity of on-demand and subscription-based membership models to rise further in the future.
To learn more about these insights, please click the download button.