Sreeradha Basu, The Economic Times

As work-from-home trend declines, flexible office spaces work for employees and companies

A recent report posted on The Economic Times talks about how Providing convenience and flexibility for employees on one hand, cost-effectiveness, and asset-light models for employers on the other, coworking/managed spaces are booming. Demand for such spaces is soaring in large metros and Tier-2 cities alike as companies tighten return-to-office rules.


On a good day, Nira C's commute to her office on Outer Ring Road, one of Bengaluru's most congested areas, took 1-1.5 hours; the time doubled during rainy days or traffic snarls.

With a toddler at home and only a parttime nanny, the fact that her employer, a software company, now offers the option of a coworking space closer home, is a huge relief.

"It had come to a point when I was thinking Id have to quit but now, my office is close enough to nip out in case of anything urgent at home, says the 33-year-old.

Demand is coming in across sectors as varied as tech, IT/ITeS, professional services & consulting, health & pharma, manufacturing, food aggregators, BFSI, BPOs, GCCs, airlines and media, with Welspun One, Harvard Business School, AdaniConneX, Kotak, RaboBank, JPMC and Nielsen among those opting for such spaces, said operators who are seeing occupancy rates of anywhere between

85-100%."With the declining trend of work from home, flexible office spaces are fast catching up in Tier 2 cities owing to the rising trend of satellite offices and back-end offices," said Sanjay Chaudhary, founder & CEO, Incuspaze.

"Additionally, as companies aim to reduce costs, maintain proximity to their staff, and retain valuable employees by offering flexible work arrangements, the need for flexible spaces in India is increasing." Incuspaze has seen a 15% rise in queries in first quarter of 2024 than the previous year.One of the major advantages of flex office spaces is the ability to scale up or down as per the business requirements. Traditional office spaces in prime locations often come with high rents and long-term lease agreements.

Flex office spaces offer a more cost-effective alternative, as businesses can rent only the space they need for a specific period, avoiding hefty upfront costs and long-term commitments.

There are three customer categories that are clearly taking shape, says Anshu Sarin, CEO,

91Springboard.One is the freelancers/early startup category; second is the mid-stage startup / SMEs and then there are large size companies (both MNC and large Indian corporates)."The industries falling under the latter are not just the IT/ ITES companies but BFSI, manufacturing and global capability centres.

Companies from some of these categories have done scaling of their seats with us as per requirement and lease renewals," added Sarin.

Dextrus, which caters to the premium end of the market, has been maintaining an above 90% occupancy rate. "We are seeing very large demand for companies wanting to come back to the office," said Robin Chhabra, founder and CEO, Dextrus.

Post covid, Dextrus has seen a wider range of sectors explore and take up space. "Work from home is on the wane is one of the reasons but the main reason this space is booming is because of the convenience. Companies from sectors such as warehousing, data centres,banking, education, private equity, pharma, hotels etc. are part of our clientele," said Chhabra.

For WeWork India, the member base has grown by -20% in the last year. Tech and IT/ITES companies, startups, professional services & consulting, health & pharma, manufacturing, finance, and media, are among its members.

"Over 53% of our present member base comprises tech companies such as impress, Equinix, Fynd, and 3M, among others, and we expect it to grow further in the near future." said Karan Virwani, CEO, WeWork India.



Read more at: