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Flexible Workspaces Become Core to Corporate Real Estate
Flexible workspaces are offices that companies can use without building and managing everything themselves.
They are becoming a bigger part of how businesses plan their office space.
Companies can rent these workplaces and expand or shrink more easily when their needs change.
This can also help them avoid large upfront spending on construction and furniture.
Flexible leasing has grown much faster than traditional Grade A office leasing since 2018.
In the first half of 2026, flexible spaces made up 27% of office leasing.
The amount of flexible workspace is expected to keep growing in major Indian cities.
Large companies and global capability centres are increasingly using these spaces.
Experts say future success will depend on high-quality locations and workplaces designed for enterprise needs.
Flexible leasing has grown 24.5% annually since 2018, outpacing Grade A office leasing growth of 7-8%.
Flex spaces accounted for 27% of office leasing in the first half of 2026 and leased 10.2 million square feet.
Flexible workspace stock across India’s top seven cities could increase from 98 million square feet to 137 million by 2028, according to JLL.
Managed workspaces help companies avoid major fit-out costs, enter markets faster and scale capacity more easily.
Flex operators’ share of rental exposure across four major REITs rose from 1.4% in FY23 to 5.8% in Q1 FY27.
- Who
- Enterprises, global capability centres, flexible workspace operators and real estate investment trusts are involved.
- What
- Flexible workspaces are becoming a core part of corporate real estate as companies increasingly use ready-to-use offices.
- Where
- Across India’s top seven cities and major REIT portfolios.
- When
- The trend has accelerated since 2018, with figures cited for 2024, 2025, the first half of 2026 and Q1 FY27.
- Why
- Companies want to reduce upfront fit-out costs, enter markets faster and scale office capacity more flexibly.
Key facts
- Flex leasing growth
- 24.5% compound annual growth since 2018, according to JLL.
- Share of office leasing
- 27% in the first half of 2026, up from 19.8% in 2024.
- H1 2026 leasing
- 10.2 million square feet, up 52.7% year on year.
- Expected 2026 leasing
- 18-20 million square feet for the full year.
- Current flex stock
- JLL estimates 98 million square feet across the top seven cities.
- Projected 2028 stock
- JLL estimates approximately 137 million square feet; Kotak expects 169 million square feet.
- Fit-out savings example
- A 100,000-square-foot space could avoid Rs 50-60 crore in upfront fit-out spending.
- REIT rental exposure
- Flex operators’ share rose from 1.4% in FY23 to 5.8% in Q1 FY27 across four major REITs.
Quotes
Rohan Sharma
Senior director, research and REIS, at JLL
“For a 100,000 sq ft space, assuming Rs 5,000-6,000 per sq ft for good-quality fit-outs, the upfront expenditure of `50-60 crore is saved and converted to a rental model”
financialexpress.com










