Bengaluru recorded the highest supply of Grade-A flexible office space ahead of 11 major cities in the Asia Pacific (APAC) region, according to research.
Flexible office space
A report released by real estate services and investment firm CBRE on Tuesday showed that Bengaluru topped the list of Asia Pacific (APAC) region cities, having the highest flexible office space.
Flexible office spaces are a term that describes a space having a variety of office types, helping reduce occupancy costs and enhancing collaboration. Co-working is a common type of space, followed by incubators.
According to New Indian Express, H2 2022 Asia Pacific Flexible Office Market- Bengaluru, is ahead of 11 major cities as of September 2022, in Grade-A assets. The city recorded 10.6 million sqft of flexible stock, which is the highest compared to other APAC cities, including Shanghai, Beijing, Seoul, Tokyo, and Singapore.
“The city has got a huge availability of quality real estate which is priced in a fair manner compared to other big cities of India,” said Shesh Rao Paplikar, co-founder & chief executive of BHIVE Group, justifying the feat. Source Deccan Herald.
Other Indian cities on the list
According to the report, apart from Bengaluru, Delhi-NCR and Hyderabad also account for the highest volume of flexible stock. The report reveals, as of September 2022, Delhi-NCR recorded 6.6 million sqft of flexible stock in Grade-A assets, followed by Hyderabad, with 5.7 million sqft. Also, in the Grade-A segment, India and Singapore reported the highest penetration of flexible office spaces, compared to other Asian nations. Hyderabad recorded the highest penetration with 5.5 percent, followed by Bengaluru at 5.4per cent, Singapore at 4.6per cent, and Delhi-NCR at 4.4per cent.
Speaking about the report, Anshuman Magazine, Chairman & CEO, CBRE (India) said, “This signals a healthy office sector growth amid an accelerated return to office phenomena in India, led by flexible space operators.”
The study covered a total of 19 major Asia-Pacific markets to record a total flexible stock of 76 million square feet between January and September 2022, indicating a 6 percent year-on-year growth. “The flex industry matured over the past two years,” said Henry Chin, Global Head of Investor Thought Leadership and Head of Research, at CBRE APAC.
During the period under examination, a total of 3,000 flexible space centers were recorded in the Asia Pacific region wherein tech firms remained the top users at 36 percent, followed by business services companies at 28 percent. Others included finance, life sciences, and retail firms.