“Bengaluru has one of the best ecosystems for the development and evolution of flex spaces in the country. Therefore, it is no wonder that, today, the city almost leads in flex space absorption owing to its large numbers of startups and IT/ITES companies, “said Rahul Arora, Managing Director, Bengaluru, JLL.
The city also has a higher penetration of flex space in the country at 4.8% as compared to the national average of 3%, according to JLL report – Reimagine Flexspaces A 360⁰ view.
“It is anticipated that flexible space will grow by an average of around 15-20% per annum over the next three-to-four years”
Market penetration basically represents flex space as a proportion of total office stock. Bengaluru and Delhi NCR together account for more than 50% of the flex space stock in India, with Bengaluru housing around 10.6 million sq ft of such spaces.
Irrespective of several short-term disruptions and challenges, increased demand from large enterprises, will support the growth of the flex space market to more than 50 million sq. ft. by 2023. It is anticipated that flexible space will grow by an average of around 15-20% per annum over the next three-to-four years, mentioned the report.
“While the flex-space market more than tripled in the last 3 years, the momentum going ahead will be relatively slower. Players are likely to tread cautiously, and the overall market is expected to expand 1.5 times from the current size. At the same time, demand for flexible space is likely to remain resilient and we expect the size of the flex space market to cross 50 mn sq. ft. by 2023 led by increased demand from larger enterprises,” said Samantak Das, Chief Economist and Head of Research & REIS, JLL Ind
In the commercial real estate space, flex spaces have become synonymous with adaptability. However, flex space operators have been agile and are recalibrating their business strategies, laying a greater emphasis on profitability and evolving strategies to ensure stable occupancy levels in their flex space centres.