Flexible Office Space Market Set to Soar Beyond 100 Million Sq Ft by 2026

Flexible office space operators hold 67 million sq ft of prime office space in their portfolios, projected to exceed 100 million sq ft by 2026 due to surging demand from corporates. Real estate consultant Vestian reports substantial growth post-pandemic, driven by flexibility and cost advantages. Significant expansions are also noted in tier-2 cities.

Flexible office space operators currently control a portfolio of 67 million sq ft of prime office space, with projections indicating this figure will surpass 100 million sq ft by the end of 2026, according to a recent report.

Real estate consultant Vestian highlighted in its latest analysis that the flexible office market has observed a shift in demand post-pandemic, moving from startups and SMEs to large conglomerates, primarily due to flexibility and cost advantages. This shift has spurred significant growth, adding 27 million sq ft to the total flexible office space between 2020 and 2023.

Vestian reported that by June 2024, the total flexible office space reached 67 million sq ft, marking an annual increase of 25 percent. Despite this growth, flexible office space still constitutes only 7.5 percent of the total grade-A office stock nationwide. Vestian forecasts that the stock of flexible office space will surpass 100 million sq ft by 2026 as the market continues its rapid expansion.

(With inputs from agencies.)