Flexible Office Spaces: Demand Rise 6 fold in 3 years..!

Flexible Office Spaces:  Demand Rise 6 fold in 3 years..!

India is one the most attractive destinations for large global corporations to expand their presence due to large demographic and talent pool.

The country is no more looked at as a low-cost destination, but is associated with high-value business critical functions, said a senior executive at a global consultancy.

Office space is being used to improve productivity at the workplace and retain people, as over the next 5 to 10 years India will see five generations of workforce, said a senior executive at a large consultancy firm.

“Convergence between co-working operators and conventional landlords will accelerate. Cost of replacement staff is much more than real estate,” said Lee Elliott, head for research (Occupier Services), Knight Frank.

As per the consultancy, 15% of the total operational cost is real estate and 55% is people driven for any corporate.

 “The focus is clearly on retention. You can not push more and more people in the same space,” he said.

This is expected to lead to increasing demand for flexible office spaces that will expand at least six-fold to account for 35% of all office space globally in three years, up from just about 5% at present.

“Earlier co-working was the last space landlords would tie up but it is now the first tenants as it creates vibrancy and footfall,” said Elliot.

Companies are looking at 50% conventional office space on a ten years plus lease. Separately 30% of the office space will be on flexible model and 20% in a co-working environment, as per Knight Frank.

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