For decades, corporate India equated growth with locking in large, long-term office leases. Securing sprawling spaces for 9–15 years was seen as a symbol of stability. But the pandemic upended that thinking. Hybrid work became permanent, desk utilisation dropped, and CFOs and CHROs realised inflexible leases were no longer sustainable.
Flexible, managed workspaces — once seen as temporary solutions for startups — are now a core part of enterprise strategy. Companies are paying for what they use, scaling up or down quickly, and avoiding costs associated with empty desks.
A mid-sized IT firm in Pune recently shifted 40% of its workforce into managed offices. “We realised we were paying rent for empty desks. Now, we can expand in NCR or shrink in Bengaluru without breaking a sweat,” an employee said.
Tier-2 Cities Are Emerging as Growth Hubs
The shift isn’t limited to metros. Tier-2 cities such as Indore, Coimbatore, and Jaipur are emerging as key expansion hubs. Lower costs, improving infrastructure, and access to talent make these cities attractive for enterprises looking to decentralise risk.
Knight Frank data for 2025 shows India’s top eight office markets saw a 74% rise in gross leasing to 282 lakh sq. ft., reflecting strong adoption of managed and flexible spaces. Companies are no longer just saving money; they’re building operational resilience.
In Indore, for example, the Indore–Pithampur corridor and improving logistics have drawn e-commerce and FMCG firms into managed offices. While not flashy, these locations provide practical solutions for today’s uncertain business environment.
Flexible Workspaces Are Becoming Core Strategy
Flexible workspaces are no longer “Plan B.” Industry reports from Cushman & Wakefield indicate that hybrid work has significantly reduced desk utilisation, making traditional leases inefficient. Managed offices offer plug-and-play infrastructure, shorter contracts, and bundled services such as IT support and ESG compliance.
A standout example is Smartworks’ Gurugram expansion in early 2025, leasing nearly half a million sq. ft. in DLF City-V at an annual rent of ₹94 crore. The company now operates four campuses in the city, providing scalable, collaborative, and sustainable spaces for large corporates. This demonstrates that managed offices are now mainstream, not just temporary fixes.
Employee Experience Shapes Workspace Decisions
This transformation isn’t just about cost and agility; it’s about people. Employees expect flexibility, wellness-focused design, and sustainable environments. Corporate offices now incorporate natural light, collaborative zones, green certifications, and wellness features, creating a more humane workspace.
Companies realise productivity isn’t measured by square footage but by employee experience. Offering employees comfortable, engaging, and sustainable spaces has become a strategic differentiator.
Balancing Growth, Flexibility, and Sustainability
The adoption of flexible workspaces allows enterprises to expand without long-term commitments, decentralise risk to Tier-2 cities, and meet ESG and employee-centric goals simultaneously. Companies can operate resiliently, adapt to hybrid models, and provide meaningful experiences for employees — all while keeping costs manageable.
The message is clear: corporate India is reimagining office strategy. Growth is no longer about permanence; it’s about flexibility, efficiency, and resilience. Hybrid work, flexible spaces, and Tier-2 expansion are quietly rewriting the rules of enterprise real estate, ensuring companies are better positioned for the challenges and opportunities of 2026 and beyond.
