60% of Businesses Choose Flexible Spaces

Businesses choose Flexible Spaces more than ever, as recent Awfis Space Solutions Limited and JLL India & Smartworks reports, Workspace Next Heights H1 and India’s Flex Space Market show. These reports shed light on the changing landscape of corporate real estate and how companies are adapting to their workspace requirements.?

Reports reveal that 63% of companies, regardless of size, are now adopting flexible office solutions. This trend underscores the importance of adaptability in today's office environments, as workspaces need to be more responsive to businesses' unique and evolving needs. Workplace flexibility is becoming more valuable to the modern workforce, and organisations recognise the need to meet employee expectations by providing them healthy, flexible work environment.

Businesses choose Flexible Spaces in major cities such as Delhi NCR, Pune, Bangalore , Mumbai , Chennai, and Hyderabad. These cities are at the forefront of the flexible workspace industry. As of 2023, almost half of all bookings for flexible workspaces in India were made in the southern cities of India.?

Why Businesses choose Flexible Workspaces

Businesses choose Flexible Workspaces as their primary and secondary offices. According to a report by Awfis, almost half of the surveyed individuals now utilise flexible workspaces for their head offices, which were previously based on regular leases. More interesting- over three-quarters of the respondents prefer flexible workspace solutions for their branch offices due to their convenience and flexibility, especially for their subsidiary locations.

As the way we work continues to evolve, more and more people are adopting remote or hybrid working models. Flexible workspaces are becoming popular among businesses as they align with these new working methods. They provide workstations without the long-term commitment or high costs associated with traditional office leases. Furthermore, these are affordable office spaces and include all necessary costs, such as utilities, maintenance, and other facilities, in one price.

Another primary reason businesses choose flexible workspaces is the sense of community they foster. Working in a flexible space also provides opportunities to connect with professionals, mentors, investors, and venture capitalists, which can open doors to new collaborations and partnerships. Moreover, flexible workspaces benefit the business and employees by improving productivity, improving work-life balance, and supporting mental well-being. These factors are crucial in today's fast-paced business world.

Startups & Tech companies making a beeline for Flexible Workspaces

Flexible workspaces are becoming increasingly popular, with some industries leading the way in adoption. Among these industries are startups and tech companies; particularly in cities like Chennai , Delhi -National Capital Region, Pune , and Hyderabad , where over half of the available flexible workspace is occupied by technological companies .

The trend towards flexible workspaces is broader than tech companies and startups. Various other businesses choose flexible workspaces, such as BFSI, Engineering & Manufacturing, IT/ITeS, New Tech, and BPM, and realise the advantages of utilising adaptable and dispersed workspaces. As a result, these sectors are adopting more flexible office arrangements.

According to JLL & Smartworks India's Flex Space Market Report, from FY2021 to FY2023, startups have also been a significant part of the flexible office space market. Startups made up 31% of all leases for flexible workspaces during this period.

Movement of Flexible Spaces in Tier 2 Cities

The popularity of flexible workspaces is not restricted to metropolitan areas only. It has also gained momentum in regions beyond the major cities, and businesses choose flexible workspaces in Tier 2 Cities . There is a significant rise in adopting flexible or coworking spaces in Tier 2 cities due to their adaptability, cost-effectiveness, and other factors.

One of the primary reasons is the ability to maintain business continuity, which is crucial for modern & gen-z businesses. In Tier 2 cities, flexible workspaces empower businesses to operate seamlessly, even during unexpected disruptions. The adaptability of these spaces ensures uninterrupted workflow, which is highly sought-after in today's fast-paced environment. Moreover, these cities offer cost-effective solutions for businesses, with lower rental costs than metropolitan areas. This cost efficiency helps businesses streamline budget management, freeing up funds for other essential areas of operation.

Tier 2 cities have a unique advantage in talent retention, as most employees are from these cities. Allowing them to work closer to home enhances employee retention rates. Furthermore, government initiatives that support businesses in Tier 2 cities make the prospect of flexible workspaces even more attractive.

The workplace environment is evolving, and Awfis and JLL & Smartworks reports reveal that 60% of businesses choose flexible workspaces. No matter what sector or size of business we operate in, flexible workspaces will play a pivotal role in the future of the corporate real estate industry.

#flexibleworkspace #delhincr #chennai #mumbai #pune #kolkata #bangalore #realestate #commercialrealestate #corporate #companyculture #industry #startups #tech #technology #banking #finance #manufacturing #business