India is the leader in flexible A-grade office stock in the APAC region. Businesses are largely re-engineering their portfolio and workplace strategies to accommodate hybrid work arrangements
New Delhi: Bengaluru tops the Grade-A flexible stock list of 12 Asia-Pacific region (APAC) cities, according to a study by international property consultant CBRE. As of September, Bengaluru recorded 10.6 million sq ft of grade-A flexible stock assets, the highest among all major APAC cities including Shanghai, Beijing, Seoul, Tokyo and Singapore.
Apart from Bangalore, Delhi-NCR and Hyderabad also accounted for the highest volume of flexible stock in the APAC region. As of September, Delhi-NCR recorded 6.6 million sq ft of flexible stock in Grade-A property, followed by Hyderabad with 5.7 million sq ft. Furthermore, in the segment, India and Singapore reported the highest penetration of the flexible office space as compared to other Asian countries.
Hyderabad recorded the highest penetration at 5.5%, followed by Bengaluru at 5.4%, Singapore at 4.6% and Delhi-NCR at 4.4%.
The report also states that post the pandemic, India continues to witness the highest growth in the flexi-office market in the APAC region.
“India is leading the way in flexible A-grade office stock in the APAC region. "Occupiers are re-engineering their portfolio and workplace strategies in a big way," said Anshuman Patrika, President and CEO - India, South-East Asia, Middle East and Africa, CBRE.
He added that this indicates a healthy office sector growth amid a rapid return to the office sector in India led by flexible space operators.
“It is also noteworthy that Bengaluru, Delhi-NCR and Hyderabad account for nearly 35% of the total flex stock (A grade) in the APAC region, with Bengaluru registering the highest number of flexible stocks ahead of Asian cities,” the magazine said.
As per the report, the total flexible stock volume in the APAC region stood at 76 million sq ft, registering a 6% year-on-year growth and 15% more than the pre-pandemic growth level during the January-September 2022 period .
During this period, the total number of flexible space centers in APAC stood at 3000. Tech firms (36%) and professional services (28%) remain the top users of flexible office space, followed by finance, life science firms and retail. Companies in the overall APAC Flex market.
“The flex industry has matured over the past two years,” said Henry Chin, Global Head of Investor Thought Leadership and Head of Research at CBRE APAC.
“As we approach the new year, companies that continue to embrace flex space will be better positioned to adopt hybrid working arrangements, support their employees and remain agile in their real estate strategies. Additionally With companies being able to compare and choose from a variety of flex options, operators are identifying and expanding into secondary markets," Chin said.
The CBRE APAC study covered 19 major markets in Asia-Pacific, including Japan, China, South Korea, the Philippines, Hong Kong, Australia, Singapore and India.
The report lists three key trends shaping the flexible office landscape in 2023, with widespread adoption of hybrid working resulting from flexible space operators offering on-demand subscriptions to cater to a more dispersed workforce Are included.
Growing demand for customized enterprise and turnkey solutions Partnering with landlords using management contracts as flexible space operators to reduce rising fit-out costs and capex constraints and the use of asset-light strategies are among the key trends Were from
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