OFFICE 3.0: WHAT TODAY'S OCCUPIERS REALLY WANT

Long gone are the days of hierarchy driven cubicles and formal structure with fixed desk setups. In 2010-2012, modern office layouts gained traction with emphasis on collaboration, flexibility and open spaces. Post Covid, workplaces began to be designed with experiential and amenity-rich environments to attract employees to come to office. A new term doing rounds is "Resimercial" design - that incorporates residential+ commercial aesthetics to create a comfortable, home-like feel for employees.

BUT, WHAT DO EMPLOYEES REALLY WANT?
A study reports that most employees would reject an offer if they did not find the office appealing. 89% want their office to include regenerative spaces for regular breaks to improve performance, whereas 73% claim their productivity is higher when given an opportunity to use flexible furniture arrangements and 87% respondents expect the office to support their well-being and health. IWG's research amongst part-time workers highlighted that the biggest barrier discouraging them from staying in or rejoining the workforce is rising commuting costs. Nearly half (49%) of parttime workers surveyed would consider leaving employment if denied flexible working options. About 55% surveyed would return to work if they had flexibility in their working patterns.

According to Mark Dixon, CEO of International Workplace Group, "High commuting costs combined with limited flexibility are a challenge for many workers. By offering greater flexibility over how and where work is done, businesses can not only retain valuable team members but also attract talented individuals back into the workforce." Arpit Mehrotra, Managing Director, Office Services, Colliers India shared his perspective, "Talent attraction and productivity are strongly influenced by a combination of multiple factors such as well-designed collaboration spaces, access to natural light, ergonomic workstations, technology-enabled meeting rooms, etc. and are complemented by holistic amenities such as wellness zones, cafés, yoga & fitness rooms and breakout areas.

Additionally, office location-particularly connectivity, accessibility, and proximity to transit hubs, has become a critical decision driver in talent attraction & retention as well as operation expansions." Citing their own survey, Amit Ramani, CMD, Awfis Space Solutions Limited stated, "The office features that most strongly influence talent attraction and productivity are those that prioritize flexibility, wellbeing, anda thoughtful balance between focus and collaboration. In today's workplace, value is no longer defined by desks and chairs. Organizations are now creating environments where teams feel energized, connected, and eager to return. At Awfis, 87% of members frequent the Awfis café regularly, while nearly half (48%) prefer team meals, reinforcing food's role asa catalyst for collaboration. When it comes to unwinding, 74% of respondents favour indoor Awfis spaces over outdoor areas, highlighting the importance of well-designed, comfortable interiors. These insights underscore a clear shift: modern offices are evolving into holistic ecosystems-where design, food, community, and experiences converge to drive belonging, productivity, and sustained talent attraction."

Research by International Workplace Group finds more flexible ways of working could be key to attracting and retaining part-time workers, boosting overall workforce productivity About 44% of former part-time workers are actively considering rejoining the workforce, provided they can work hybrid. In contrast, 40% of part-time workers would leave the workforce entirely if required to commute long distances daily


Giving an occupier's point of view, Praveen Vasudeva, Director, APAC & Japan, Global Real Estate, IBM said, "The office features that most influence talent attraction and productivity are those that are human-centered, technologyenabled, and wellnessfocused. Access to natural light, ergonomic furniture, biophilic design, and optimized acoustics significantly enhance comfort, cognitive performance, and overall wellbeing. Intelligent collaboration spaces, quiet zones, and inclusive layouts support diverse workstyles, including neurodiverse needs and sensory considerations. Behavioral and cultural cues-such as thoughtfully designed community areas, informal collaboration zones, and visible leadership touchpoints-help strengthen connection, belonging, and organizational identity. Flexible spaces and services, supported by frictionless technology, enable easy navigation, planning, and seamless hybrid collaboration. High-quality meeting environments, visual comfort, intuitive controls, and reliable technology further elevate the day-to-day employee experience. Together, these elements create inspiring and inclusive workplaces that drive engagement, enhance wellbeing, and improve productivity, while reinforcing company culture and supporting longterm talent attraction and retention."

The message is clear, employees from Millennial to GenZ, prioritize flexibility and well-being and in sync, companies are shifting their strategy from location-centric to people-centric offices that offer high-quality employee experience.


KEY OCCUPIER DEMANDS FOR OFFICE 3.0

With India's gig workforce set for dramatic growth over the coming decade -projected to reach an estimated 23.5 million workers by 2030- the needs of this demographic are a key consideration for business leaders, ensuring they can retain talent while unlocking and bolstering growth. The rapid expansion of the GCCs too has emerged as one of the key growth drivers for India's commercial office real estate sector in recent years, accounting for around 35-37% of the total net absorption during FY2024-FY2025.

As per Anupama Reddy, Vice President and Co-Group Head, Corporate Ratings, ICRA, said: "The surge in demand for office space is being driven by expanding global capability centres (GCCs), flex-space operators, and the Banking, Financial Services, and Insurance (BFSI) sector." As a matter of fact, India continues to strengthen its value proposition on talent, costs, and growth and the commercial office real estate segment is well-positioned to capitalize on emerging opportunities. Ram Chandnani, Managing Director - Leasing, CBRE India had stated ina report, "Global capability centres and Indian occupiers are shaping the next chapter of the country's office sector. GCCs alone account for about 35-40% of absorption, at the same time, flexible workspaces are no longer a secondary option; they are becoming integral to occupier strategies, with adoption levels set to double in the coming years. Together, these forces will redefine workplace models, creating a more dynamic, innovative, and responsible officе ecosystem for the future."


Some Key Observations In The Office Space Evolution:

1. Communal and collaborative space has doubled from pre-pandemic levels to 40-50% of total office area.

2. Over 60% of occupiers are focusing on Grade A or new spaces that offer premium amenities.

3. Roughly 80% of occupiers plan to expand using flexible workspaces over the next 3-5 years.

4. Sustainability and ESG integration are now in top-five driver for real estate decisions with health focus like -. air purification systems, ergonomic furniture, and on-site gyms or relaxation rooms.

5. Al-powered tools for meeting room optimization and high-speed connectivity have become 'must-haves' to supporta dispersed workforce.


OFFICE 3.0: A SHIFT IN PURPOSE

Over the past decade, corporate occupiers have transitioned from fixed, real estate footprints to more agile, hybrid-ready portfolios. There is a clear shift toward distributed footprints, flexible lease structures, and experience-led workplaces that support both in-person collaboration and remote work, as required. "While workspace preferences vary across organizations and involve work priorities as wellas employee expectations, collaboration zones reflect the emphasis on team interactions, innovation, and culture-building. In addition to formal meeting & project rooms, informal spaces such as lounges & cafes, open areas, break-out areas, social zones, etc., are seamless, acting as new-age collaboration zones. Meanwhile, quiet pods & focus rooms are promoting undisturbed work within hybrid work environments. Simultaneously, social & community spaces are gaining importance for informal engagement, employee well-being, and cross-team connectivity," informed Arpit.

What is also seen is that corporate occupiers are inclining from space-centric planning towards people first, data driven strategies. Offices now function as intentional collaboration hubs that strengthen culture, accelerate innovation, and complement hybrid working models. Occupiers are also pivoting towards flexible and managed office solutions, alongside a strong flight to quality, with scalability, technology integration, and portfolio optimization becoming firmly entrenched in decision-making.

 "Organizations focus on portfolio right sizing, location rationalization, and creating higher quality environments that reinforce brand and employee engagement. Investment has moved toward flexible, tech enabled spaces with strong digital infrastructure, sustainability standards, and adaptive layouts that can scale with business needs. The priority is no longer maximizing occupancy but enabling productivity, supporting well-being, and ensuring the office becomes a strategic asset within a broader hybrid ecosystem, said Praveen. Indeed, the primary role of the office has evolved from simply being a place to work to a hub for interaction, requiring layouts and designs that support dynamic working styles. As highlighted in Awfis latest Managed Office report, occupiers are steadily moving away from long-term, capital-intensive leases toward experience-led, fully managed office models. Today's organizations prioritize agility, scalability, and speedto-market, favoring built-to-suit spaces that can expand, contract, or relocate in line with business needs. This shift is further shaped by widespread hybrid adoption, a structural move from CAPEX to OPEX, heightened focus on employee experience, growing preference for managed and flexible offices, and geographic diversification beyond traditional metro markets. "Over the past few years, we have seen a decisive shift in how organizations view their workplaces. Collaboration zones, quiet focus areas, and social spaces all matter, but their real value lies in how thoughtfully they are integrated. The modern office must enable choice, flexibility, and purpose, especially in a hybrid work environment," added Amit.

The New Work Models

Work From Office: Employees work full-time from a physical office, required in manufacturing, banking and similar traditional corporate roles, but focus has shifted to comfort& wellness to retain and attract talent.

Work From Home: Employees work entirely from home, common in Tech, digital media, consulting & startups with focus on productivity and getting talent without geography.

Work-from-Anywhere: Employees work from any location globally, subject to policy. Focus is on talent mobility, compliance & flexibility.

Hybrid Work: A mix of office and remote work is currently a popular model with set office days in a week to work from office and rest from home. Here the focus is on balancing team collaboration and space optimization.

Flex Work: Employees choose workspaces based on tasks-focus pods, meeting rooms, lounges, common in modern corporate offices where the focus is mainly on productivity, space efficiency.

Gig Work: Employees work on project-basis, short-term, contract, or on freelance engagements in creative, tech, consulting, real estate advisory and company focuses on agility and cost efficiency.

Distributed Work: Teams are spread across multiple cities or countries with no central HQ which is common in global tech firms or multinational startups. This brings in focus cross-cultural collaboration. Hub-and-Spoke: Large enterprises post-pandemic, have central HQ with smaller satellite offices closer to employees offering reduced commute to tap regional talent access.


CHANGING OCCUPIERS WORKSPACE STRATEGY

Accelerated by the post-pandemic reset and emergence of new work models, the occupiers demand is being driven by the need for flexibility, cost optimization, and a stronger focus on employee well-being. The office is no longer seen merely asa place to work, but as a destination for collaboration, culture-building, and meaningful engagement. Large enterprises are now embedding flexible and managed workspaces into their core real estate strategies. A high-performing workplace is not getting defined by a single format, but by an integrated ecosystem of collaboration zones, quiet pods, and social or community areas, supported by flexible project rooms, learning spaces, wellness zones, and technology-enabled hybrid settings. The most effective workplaces are choice-rich and adaptable, empowering employees to select environments aligned to their tasks, energy levels, and work styles. Design intentionally incorporates neurodiverse needs, sensory considerations, accessibility, and cultural cues to ensure inclusivity and equity. Sharing IBM workplace strategy Praveen added, "Beyond physical space, the ecosystem extends to services, technology, and experiences-including curated engagement and social programs-creating resilient, human-centric workplaces. When seamlessly integrated, these elements elevate employee experience, strengthen culture, and drive productivity, innovation, and retention, aligned with IBM's commitment toa smarter, more inclusive future."

Workspace Formats: Over the past few years, there has been a decisive shift in how organizations view their workplaces. Collaboration zones, quiet focus areas, and social spaces all matter, but their real value lies in how thoughtfully they are integrated. The modern office must enable choice, flexibility, and purpose, especially in a hybrid work environment. "Enterprises today prioritize a balanced, activity-based workplace, where collaboration drives innovation, focused zones enable deep work, and social spaces strengthen culture and engagement. No single format works in isolation, concurred Amit.

Sustainability: Sustainability has becomea key consideration in occupiers' leasing decisions, largely driven bybroader ESG mandates. Nearly 75% of Grade A office leasing in 2025 occurred in green-certified buildings, highlightinga strong preference for sustainable assets. "Although the wider adoption and deeper integration is stillevolving, occupiers are increasingly moving beyond green certifications and evaluating construction material usage, sustainable design elements, energy & water consumption, waste recycling etc. and tracking operational efficiency enhancements through measurable performance metrics," said Arpit

Technology: Technology plays a foundational role in present-day office planning, acting as the backbone that enables productivity, employeе experience, and operational efficiency. Smart building systems and loT sensors optimize energy consumption, indoor air quality, lighting, and space utilization in real time-driving sustainability outcomes while reducing operating costs. Advanced collaboration platforms seamlessly connect physical and digital environments, ensuring equitable and inclusive participation for hybrid teams. Al plays a critical role in enhancing both operational efficiency and employee experience, enabling smarter building operations while reducing friction in how employees interact with the workplace. These capabilities enable flexible, activity-based environments that adapt to diverse workstyles and evolving business needs.

Beyond the individual experience, data and analytics provide leaders with predictive insights for portfolio optimization, demand forecasting,and risk management. Together, these technology-enabled capabilities create workplaces that are adaptive, efficient, and engaging-fostering productivity, innovation, wellbeing, and long-term resilience in an increasingly dynamic business landscape.

Paradigm Shift in Occupiers Demand

1. Demand for co-working and managed offices, has risen significantly and occupiers are incorporating distributed workspace strategies as part of their real estate plans.

2. Internet of Things (loT), sensors and smartphone apps to control immediate environment (temperature, lighting, etc.) are getting integrated in space design as occupier want personalized environment accessibility.

3. Occupiers are emphasizing on realtime data on space utilization, energy consumption, and air quality to help optimize the real estate cost and efficiency.

4. To encourage employees to work from office, occupiers demand workplacesoften described as a "hospitality-inspired".

5. There is a growing demand for greencertified buildings, driven by corporate values and employee's preference for healthy work environment.

6. Fit-outs have shifted from being an addon service to a core business driver for workspace operators. Companies today want customization-to make scaling smoother and smarter.


FLEX WORKSPACES IN CORPORATE REAL ESTATE STRATEGY

Many organizations consider flexible workspaces as a core part of corporate real estate strategy in India, marking a clear structural shift. In 2024, they accounted for nearly 20% of total office leasing, with demand driven largely by large enterprises and multinationals, which now represent over half the market by value. Today, flexible workspaces have moved up the value chain, from being seen asa supportive real estate solution to being an integral part of mainstream corporate strategy. Occupiers now use flex spaces to enable rapid scaling, de-risk expansions, enter new markets, and support hybrid work models. As per Arpit, the share of flex space in occupiers' portfolios has increased from less than 10% five years ago to around 15-20% today,and is likely to rise further, driven by capex-free fit-outs, rental arbitrage, supportive lease terms, enterprise-grade solutions and customized offerings.

According to Amit the reason for rise of flexible workspaces is that organizations are moving away from rigid, long-term leases towards scalable models that support hybrid work, cost efficiency, and evolving talent expectations. Therefore, flexible workspaces are no longer peripheral-they have become a strategic pillar of how enterprises plan, optimize, and futureproof their office portfolios. Praveen believes that flexible workspaces are increasingly vital in corporate real estate, offering agility, cost savings, and adaptability for hybrid work and volatile markets. Organizations blend traditional offices with on-demand, distributed spaces to support workforce mobility and talent access, optimizing occupancy based on real-time demand. Also. location strategy is crucial; ideal sites boast robust infrastructure, connectivity, and accessibility. Strategic placement near amenities, transit, and residential areas boosts appeal and employee satisfaction. Smart location decisions also consider local talent pools, market dynamics, and regulations to ensure spaces are effectively deployed.


WHAT THE LANDLORDS/ DEVELOPERS NEED TO DO?

Occupiers today are seeking flexible, technologyenabled workplaces supported by agile leasing models and deeper tenant-landlord collaboration. As workforce sizes, hybrid work patterns, and technology needs continue to evolve, demand is gradually shifting toward modular, easily reconfigurable spaces with adaptive lease structures, rather than rigid long-term commitments. In parallel, the availability of robust IT infrastructure and digitally adept workspaces have become a hygiene factor. Overall, landlords are increasingly expected to move beyond the role of space providers and act as strategic partners, co-creating workplace solutions aligned with occupiers' operational needs and business objectives.

Buildings must operate as intelligent, technologyenabled environments, offering resilient digital infrastructure, smart building systems, and real-time data that seamlessly integrates with corporate IT, workplace platforms, and ESG reporting. Sustainability must be embedded at the core through net-zeroready design, renewable energy, and circular water and waste systems, enabling occupiers to meet their carbon and resilience commitments. Equally important is the creation of human-centric, experience-led campuses that foster engagement through inclusive design, wellness and biophilic elements, community hubs, and curated social, cultural, and learning experiences. Ultimately, occupiers expect landlords to share accountability and continuously evolving the workplace to support talent attraction, productivity, resilience, and sustainable business growth.

According to the latest Managed Office report, 57% cite cost efficiency, particularly savings in fitout and maintenance, as the key driver for moving away from traditional offices. Design and experience are equally critical. 68% of respondents say modern design and customization have the greatest impact on employee productivity, while 81% value the ability to tailor layouts as teams evolve. This underlines why landlords must go beyond shell-and-core delivery and partner with occupiers on design, technology, ESG-aligned infrastructure, and day-to-day operations. Developers who can deliver scalable, brand-aligned, tech-enabled workplaces replicable across metros and emerging Tier IIand III cities will be best positioned to meet occupier expectations and lead the next phase of India's commercial real estate evolution.

THE "IDEAL OFFICE 3.0 & BEYOND

The ideal office of 2026 and beyond is not merely a place but an integrated, intelligent ecosystem where flexible, data-driven real estate, secure and immersive digital platforms, and humancentric design converge. Enabled by Al, digital twins, and VR/AR, it seamlessly blends physical and virtual environments to support business agility, sustainability, and equitable hybrid collaboration. As a culture amplifier and talent magnet, the office fosters inclusion, wellbeing, and community through choice-rich spaces and curated experiences-functioning as a purposebuilt hub that people choose for connection, innovation, and impact rather than obligation. Although sector specific office space requirements and preferences will continue to play a critical aspect of demand-supply dynamics, most next-gen workspaces will be hybridsupportive, technology-adept & experiencedriven and seamlessly blend flexibility, digital empowerment, wellness & sustainability. It will be agile, highly customizable, and deeply integrated with digital tools. There is no doubt, the next-generation office will move far beyond static desks, emerging as an ultra-flexible, intelligently connected hub designed to complement how people work and enhance productivity.

The "Office 3.0" Evolution Will Be Shaped By Four Defining Pillars

Unified Workspace Experiences: Workspaces will deliver a seamless, one-stop solution-integrating space, design, and services-offering agility, scalability, and a consistent client experience across Tier I, II, and III cities.

Human-Centric Design & Well-Being: The office will becomea catalyst for community and belonging, anchored in biophilic design, ergonomic wellness zones, and activity-based layouts. Each workspace will reflect the organization's unique culture, driving deeper engagement, collaboration, and performance.

Tech-Driven Smart Offices: Powered by Al, IoT, touchless interfaces, and real-time analytics, offices will be fully connected and intelligent-optimizing energy consumption, maximizing space utilization, and enabling frictionless hybrid collaboration at scale.

Sustainability & ESG Alignment: Sustainability will be embedded by default. Future-ready offices will integrate energy-efficient systems, eco-conscious materials, and resilient infrastructure, aligning with global environmental standards and supporting longterm ESG commitments.