Flexible workspace operators have leased over 7,000 office desks to clients in the National Capital Region (NCR) during the first quarter of 2023. This marks the highest number of desks leased since the last quarter of 2019. According to JLL India, education, consulting, and technology firms led the demand for flexible workspace. Moreover, managed office space was the preferred option for enterprises, accounting for 75% of all flexible seat leases.
JLL India also reported that the share of space leased by flexible workspace operators in the NCR’s gross office leasing has risen from 10.9% in 2018 to 23.8% in 2022. During the same year, co-working operators leased over 21,000 seats, with 65% of the demand coming from managed office space.
More than 28,000 seats were leased by flex operators from January 2022 to March 2023, with 67% of those seats being for enterprise solutions or managed office space. A majority of the demand (61%) was driven by domestic firms, while startups accounted for 38% of the demand.
The demand for managed office space is increasing as big enterprises require workspaces that match their brand philosophy and design guidelines. Flex space operators that offer services in managed office spaces can create unique workspaces that cater to the specific needs of each occupier and offer hospitality-like characteristics and value-added services. Additionally, flexible workspace is value accretive, additive, and complementary to conventional office space.
Commenting on the trend, Vineet Taing, Chief Executive Officer, Vatika Business Centre, said, “The flex space stock in the NCR has increased from 6.3 million square feet in 2019 to 9.4 million square feet in the first quarter of 2023 and the demand for flexible workspace is rapidly increasing, and the pandemic has only accelerated this trend. More and more companies are realizing the benefits of managed office spaces that can be customized to their specific needs and provide value-added services. We are committed to providing top-notch services and workspaces that meet the needs of our clients.”
