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GCC Closures Raise Questions, but Office Demand Remains Resilient
Some smaller international company offices in India have closed, and workers were affected.
This has led people to ask whether companies will need fewer offices.
Property experts say the closures do not yet show that office demand is falling overall.
Large global capability centres, or GCCs, still lease a lot of office space.
Some companies are choosing flexible offices so they can change their space more easily.
AI and a focus on productivity could mean companies add fewer workers and desks.
But companies may keep their offices because of leases or plans to grow later.
So the main change may be how companies use office space, rather than a broad retreat from it.
Closures of smaller GCCs in Bengaluru affected about 200 Cambium Networks employees and 150 at Hy-Vee’s India engineering centre.
Commercial real estate experts say the exits have not yet indicated a broader slowdown in office demand.
ANAROCK says GCCs accounted for 45% of 42.6 million square feet of gross office leasing across seven major Indian cities in its data period.
More than 40% of GCC-leased space was in flexible workspaces; ANAROCK estimates GCCs could make up nearly half of Grade A demand in those cities in 2026.
Industry experts say AI and productivity-led growth may slow seat expansion, while flexible offices and lease commitments can limit immediate space reductions.
- Who
- Global capability centres (GCCs), commercial real estate firms and workspace providers in India.
- What
- Smaller GCC closures have raised questions about office demand, while experts say demand remains supported by large centres and flexible workspace.
- Where
- India, including Bengaluru and the top seven cities covered by ANAROCK’s data.
- When
- The report was published on October 11, 2026.
- Why
- Closures and workforce changes have prompted concern that hiring restraint, AI and productivity-focused growth could reduce office space needs.
Signs of weaker space demand
Reasons demand may remain resilient
Closures and hiring restraint
Signs of weaker space demand
Closures, headcount reductions and hiring freezes at smaller or newer centres could eventually mean fewer seats and weaker expansion.
Reasons demand may remain resilient
Experts say individual closures reflect company-specific global business recalibrations and do not yet demonstrate a broad slowdown.
AI and productivity
Signs of weaker space demand
Greater use of AI and a focus on productivity could allow GCCs to take on more work without expanding headcount at the same rate, tempering demand for additional seats.
Reasons demand may remain resilient
This may slow growth in office occupancy rather than cause an outright decline, while large GCCs continue to drive leasing.
Office footprint adjustments
Signs of weaker space demand
Reduced headcount may lead to fewer seats, smaller offices or phased expansion.
Reasons demand may remain resilient
Lease commitments, hybrid arrangements and expectations of future growth can lead companies to retain their existing space, while flexible offices offer adaptable capacity.
Key facts
- Cambium Networks closure
- Its Bengaluru centre closure affected around 200 employees.
- Hy-Vee closure
- The US retailer’s India engineering centre closure affected around 150 employees.
- GCC share of leasing
- GCCs accounted for 45% of 42.6 million square feet of gross office leasing across the top seven cities in ANAROCK’s data.
- Flexible workspace share
- More than 40% of the space leased by GCCs was for flexible workspaces.
- 2026 outlook
- ANAROCK estimates GCCs could account for nearly half of Grade A office demand across the cities it tracks.
- 315Work Avenue portfolio
- GCCs account for more than 40% of its portfolio; several clients occupy 100 to 500 seats.
Quotes
Kushal Bhargava
Founder of MyBranch
“When there is a reduction in headcount, it is more often leading to fewer seats, a smaller office or a phased expansion rather than a complete exit”
thehindubusinessline.com
“On the contrary, we are seeing high demand from large GCCs for more flex spaces, which in a way is offsetting these small closures.”
thehindubusinessline.com
Sources
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