Companies’ expansion plans for the next five years
Colliers report revealed
Due to cost arbitrage and enterprise-level operations, office space occupiers are increasingly favouring flex spaces for their core business activities. Over 80% of companies are planning to expand their commercial portfolios through flex spaces over the next five years. MNCs are particularly showing a strong preference for flex spaces. In this context, Colliers has projected that flex space will grow 3 to 4 times by 2030.
A report titled “Flex Spaces: Reshaping the New Age” has been released, noting that 60% of flex space will be occupied by MNCs, with their share expected to exceed 20% over the next three to five years. Until now, flex spaces were predominantly utilised by startups. However, MNCs are also increasingly leaning towards these spaces. Consequently, it is estimated that more than two-thirds of real estate expansion in the coming years will be driven by flex spaces.
Nearly 40% of occupiers view flex spaces as core business activity centres. 77% prefer lease durations of less than a year. 45% prefer prime locations in major cities for office portfolio expansion, according to the report. Currently, 45% of mid-sized companies and 35% of large companies manage their core business operations in flex spaces. Notably, with the increasing technological advancements in flex spaces, nearly 40% of technology sector occupiers use flex spaces for core business activities.
“Over the next few years, more than two-thirds of real estate expansion in office space occupier sectors will occur through flex spaces. Particularly, 80% of expansion in the technology, engineering, manufacturing, and healthcare sectors will be driven by flex spaces,” said Arpit Mehrotra, Managing Director of Office Services at Colliers India.
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