Managed Office Solutions Fueling Growth in India’s Flex Space Market

Managed Office Solutions Drive Growth in India’s Flex Space Industry

Recent insights reveal a remarkable transformation in India’s flexible workspace segment, driven largely by Managed Office Solutions (MOS). As organizations adapt to the evolving business landscape, these solutions provide a seamless way to manage space, optimize capital expenses, and maintain operational flexibility.

Expanding Flexible Workspace Footprint

As of the first half of 2024, the flexible workspace footprint in India reached an impressive 58 million square feet. This represents a significant portion—over 7-8%—of the total Grade A office supply across the country's eight largest cities. Bangalore is at the helm, commanding 31% of this stock, with Delhi NCR following at 16%, while Pune, Hyderabad, and Mumbai come next.

Data on Inventory and Distribution

The ongoing rise of flexible workspaces is acknowledged in the report, highlighting a strategic shift in both operators and occupiers towards the MOS model. This transition particularly attracts multinational corporations looking for efficient real estate solutions in India.

Sector Demand and Absorption Rates

The IT sector stands out as a significant contributor, with a remarkable 40-50% absorption rate for curated office spaces over the last 18 months. Other industries such as Engineering & Manufacturing, BFSI, and Professional Services have also shown healthy absorption rates, driving growth in flexible office spaces.

Rising Operators and Market Share

During this period, the number of active flex space operators surged to approximately 300, with a notable concentration of Grade A stock held by the top 5% of these operators, primarily focusing on MOS offerings.

Strategic Leadership Appointments at Table Space

In response to the burgeoning demand for global corporate centers (GCCs) in India, Table Space has made significant leadership appointments to strengthen its market position. Robert Newman has taken on the role of Non-Executive Chairman, while John Hogan joins as Chief Sales Officer for the Americas. These appointments underline Table Space’s dedication to enhancing its support for clientele through service innovation.

Vision and Commitment to Growth

John Hogan, the new Chief Sales Officer for Americas, remarked, "Table Space continues to lead the Managed Office Solutions sector, with a commitment to innovation. The report illustrates the demand for MOS among global corporations, particularly within the IT-BPM sector. As leaders in GCC enablement in India, we focus on delivering high-quality, customized solutions to meet diverse needs."

Frequently Asked Questions

What are Managed Office Solutions (MOS)?

MOS are comprehensive workspace solutions that offer flexibility, minimize capital expenditures, and provide additional services tailored to client needs.

How much of India's office supply is comprised of flexible workspaces?

As of H1 2024, flexible workspaces represent over 7-8% of the total Grade A office supply across India’s top cities.

Which sectors are the largest consumers of flexible workspaces in India?

The IT sector leads the demand for flexible workspaces, followed by Engineering & Manufacturing, BFSI, and Professional Services.

How many active operators are there in the flexible workspace market?

Currently, there are around 300 active flex space operators across India.

What recent leadership changes have occurred at Table Space?

Table Space appointed Robert Newman as Non-Executive Chairman and John Hogan as Chief Sales Officer for the Americas to enhance its strategic capabilities.

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