by THO
Bengaluru tops the list of 20 Asia Pacific cities with the highest flexible office stock at 15.5 mn sq ft in the APAC region, including Shanghai, Seoul and Tokyo. Delhi NCR ranks second in the city list with a total stock of 10.7 mn sq ft of flexible office space, a report by CBRE has said.
Recent growth in the Asia Pacific flexible office space market has been primarily driven by Indian cities, where the expansion is supported by the demand for managed solutions offered by domestic flexible space operators.
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The report said that Delhi-NCR witnessed the highest increase of 26% in the flexible office stock since CY 2023. Other Indian cities also did well with Hyderabad and Mumbai making it to the top 10 cities, with 6.8 and 6.1 mn. sq ft of flexible office stock, respectively.
Other Indian cities which featured in the top 10 bracket include Hyderabad and Mumbai with 6.8 and 6.1 mn sq ft of flexible office stock, respectively.
“The ongoing expansion of the flexible office space market in India highlights its significance as a strategic option for businesses adapting to the changing demands of workspace needs,” said Anshuman Magazine, Chairman and CEO – India, South-East Asia, Middle East and Africa, CBRE.
Total stock of flexible office space in APAC region touches 89 mn sq ft
Overall, the total stock of flexible office space in the APAC region reached 89 million sq ft as of June 2024, reflecting an increase of 3.9% from calendar year 2023. The report underscored that the APAC region is home to approximately 3,000 flex space centres. It added that amid strong leasing activity by flex space operators, it is anticipated that the pace of new flex center openings will continue to be rapid throughout the remainder of the year in these markets.
Lastly, the report also highlighted that despite a return to growth mode after the pandemic subsided, the Asia Pacific flexible office space market has now entered a period of normalized expansion compared to the pre-Covid boom years.
“In the post-Covid era, operators’ priorities have shifted towards income diversification, turn-key managed solutions, and maximizing centre utilization. Operators are increasingly differentiating their brands and exploring alternative deal structures, such as management agreements and CapEx contributions by landlords, to create more sustainable business models,” said Henry Chin, Global Head of Investor Thought Leadership and Head of Research, CBRE APAC.
