Chennai: Leasing of flexible work spaces- co-working, managed spaces, business centres and hybrid spaces- have witnessed significant growth in H1 2019. Increasing occupancy rates, new sources of funding and penetration in tier II cities have contributed to this growth.
Office space has remained hot property in recent times. As far as flexible spaces are concerned, the growth in leasing was 52 per cent in first half of 2019. About 4.6 million sq ft was leased out in H1 2019, as per the data from, CBRE South Asia. Bangalore accounted for almost 30 per cent of the leasing by flexible space operators.
Hybrid spaces consisting of a mix of private cabins, dedicated/open desks, meeting rooms etc. leased out to various clients on per workstation basis for flexible tenures, saw the highest growth of 43 per cent, spaces managed by operators saw 31 per cent growth, while co-working spaces grew by 13 per cent and business centres by 9 per cent.
"India is currently one of the leading flexible space markets in APAC. Office stock is expected to grow from 600 million sq ft in mid-2019 to a billion sq ft by the end of 2030 and flexible space will comprise 8-10 per cent of the total office stock," said Anshuman Magazine, Chairman and CEO, India, South East Asia, Middle East and Africa, CBRE.