Co-working firms lease 31 lakh sq ft office space in Q1: CBRE

Amid growing demand for flexible workspaces from corporates, co-working centre operators have leased 31 lakh square feet of office space during the January-March period, marking a 7 per cent annual increase, according to real estate consultant CBRE.

The latest report on the Indian office market by CBRE highlights the key role of flexible operators, who have emerged as the second-largest contributors to the total gross demand for office spaces during Q1 2024. Flex space operators accounted for 22 per cent of the total gross office leasing of 144 lakh square feet during this period.

Delhi-NCR, Chennai, and Bengaluru emerged as the top cities preferred by flexible space operators. Technology companies were the primary demand generators, directly leasing spaces from builders, with a share of 26 per cent.

CBRE noted the consistent rise of flexible space operators within the Indian office leasing ecosystem, securing a share exceeding 15 per cent over the past five years. With hybrid work models gaining popularity, CBRE anticipates strong demand for flexible spaces, propelling the sector's growth trajectory for the foreseeable future.

Although there was a marginal decline of 3 per cent annually, the gross absorption of office spaces stood at 144 lakh square feet during January-March across the nine major cities, indicating continued momentum in the office sector.

Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa at CBRE, expressed optimism about the office sector's performance in 2023, citing enhanced occupier sentiments and pent-up demand following a rise in return-to-office initiatives.

(With PTI inputs)