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Flexible Workspaces Become Core to Corporate Real Estate

Flexible Workspaces Become Core to Corporate Real Estate
Flexible workspace turning mainstay of office real estate · financialexpress.com

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.

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

Sources

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