Key Takeaways:

*For a variety of motivations including the need for shorter leases, an ever more mobile workforce and greater caution by companies in making capital expenditures, tenants are increasingly requiring flexibility in lease terms, especially as they await greater clarity in business conditions and workplace strategies.

*Flex operators will emerge as partners for occupiers who are embarking on the journey of a hybrid, distributed work model while also looking to create a more agile real estate portfolio. Managed workspace providers will be key growth drivers of the segment given occupiers are looking at creating ‘on-demand’ yet modern and quality workspace for their employees.

*The hybrid model is also fostering the growth of flex operators in tier 2 cities as organizations look to create a work ecosystem for their employees who have migrated to their hometowns. Interestingly, even among those who did not have a tier 2 city office footprint, 34% of companies had employees working from tier 2 locations in the current scenario as per our survey.

*Flex spaces had an average share of 47% of the total tier 2 footprint of companies with presence in such cities. A significant 48% of such companies with a tier 2 presence wanted to expand further in such cities with 84% of those wanting to expand looking to use flex spaces.