Office Space Leasing By Co-Working Operators Falls 40% In July-September: Report
Leasing of office space by co-working players dropped 40 percent to 2 million square feet during the July-September period in India, according to property consultant CBRE.
The overall flexible space take up in the third quarter (July-September) 2019 stood at 2 million sq ft as against 3.3 million sq ft in the year-ago period, the company said.
However, leasing of commercial space by co-working operators rose 12 percent to 7.2 million sq ft during January-September period of 2019 as against 6.4 million sq ft in the year-ago period, according to CBRE's report titled 'India Flexible Space Digest Q3 2019'.
"We expect that landlords will increasingly cater to occupier interest by providing space-as-a-service on demand. Given that the Indian flexible space market is one of the biggest across APAC, we anticipate that this segment will remain high on the investor radar as well," said Anshuman Magazine, chairman and chief executive officer, India, South East Asia, Middle East and Africa, CBRE.
Magazine said he expects flexible space leasing to be around 9 million sq ft in 2019 and around 9-10 million sq ft in 2020.
The U.S.-based CBRE Group, a Fortune 500 and S&P 500 company, is the world's largest commercial real estate services and investment firm (based on 2017 revenue).
The company has more than 80,000 employees in 450 offices globally (excluding affiliates).
In India, CBRE has more than 8,000 professionals across 10 offices with a presence in over 80 cities.