Two years on, flex workspaces make a surprise comeback

Flexible workspace operators have seen a resurgence in India as companies bring employees back from remote work after a two-year period.

- Madhurima Nandy

Demand for workplaces that offer flexibility, customization, and short-term leases rebounded in 2022 and has prompted operators to increase their expansion efforts this year.

Flexible office operators leased 7 million sq.ft of space in 2022, the highest in any year, accounting for about 14% share in total commercial office space leasing, according to a recent report by property advisory Colliers.

The recovery followed two years when service providers closed centres, offered massive rent discounts and renegotiated contracts with landlords as people worked from home.

The challenges faced by flexible office operators during the pandemic were rooted in the ease with which customers could exit short-term leases compared to longer traditional office leases.

"2022 was a watershed year for the flex workspace sector. Even pre-covid, shared workspaces accounted for around 6-7% of the overall office leasing. We are seeing increased adoption of the flex model by larger enterprises, and that is expected to grow further," said Kunal Walia, chief executive officer and founder of Simpliwork Offices.