Nidhi Marwah, Group Managing Director South Asia and Middle East of The Executive Centre (TEC), a Hong Kong-based supplier of flexible workspace, told ET that the business spent Rs 100 crore in the first half of 2023 to lease more than 200,000 square feet across 8 facilities.
Even if finding high-quality space is still difficult, the firm plans to expand at a similar rate in the second half.
By 2025, 56% of office space occupants anticipate allocating more than 10% of their overall office portfolio to flexible spaces, according to a CBRE poll.
“The intent and ambition is always to do better than what we have already done. But the availability of good spaces is always a challenge,” Marwah said.
The Executive Centre did not intend to expand into any additional cities, but it has opened locations in Hyderabad, Gurgaon, Bangalore, Delhi, and Mumbai.
“All of these spaces are at various stages of fit-out. While earlier we used to sign 30,000-40,000 square feet of space, we are now doing about 50,000-60,000 square feet of space everywhere,” Marwah said.
One Horizon Centre and DLF Downtown in Gurugram, Helios Business Park, Connaught Place, New Delhi, FIFC, Mumbai, Salarpuria Knowledge City, RMZ Nexity, Hyderabad, and Prestige Palladium Bayan, Chennai are the locations of these new centres.
These facilities, which are housed in grade A office buildings, increase the company’s portfolio by 2 lakh square feet and 2,200 workstations.
The flexible workspaces operated by TEC have an average occupancy rate of 92%, and in 2022, the Indian market contributed $15 million, or 31% more than the year before, to the company’s worldwide operational profit, or EBITDA. Additionally, TEC increased renewal prices by an average of 5-8%.
More than 180 facilities are run by The Executive Centre (TEC) in 33 cities and 15 marketplaces.
“Between the return to office trend, changes in the global political climate and the volatility in the financial markets, the flexible workspace industry has had many catalysts accelerating demand. The industry in India is accelerating and exceeding all industry projections, especially with demand from sectors such as IT/ITES, banking, and healthcare,” Marwah said
Despite the popularity of mixed working arrangements, the CBRE poll also reveals a shift in occupiers’ strategies for drawing workers back to the office, which contrasts with the patterns seen in 2021 and 2022.
As in the July 2022 poll (91%), the majority of respondents in the January-March quarter (96%) favoured working in the office at least three days each week.
