Flexible Space Take-Up In India Reaches 4.6 Million Sq. Ft. In H1 2019

CBRE
CBRE South Asia Pvt. Ltd, India's leading real estate consulting firm, announced the findings of its latest report titled 'India Flexible Space Digest – H1 2019'. According to the report, the overall flexible space take-up in India reached about 4.6 million sq. ft in H1 2019. During this period, Bangalore accounted for almost 30% of the leasing by flexible space operators.

Commenting on the findings of the report, Anshuman Magazine, Chairman and CEO, India, South East Asia, Middle East and Africa, CBRE, said: "India is currently one of the leading flexible space markets in APAC and we expect increasing investments in this segment going forward. Office stock is expected to grow from 600 mn sq. ft. in mid-2019 to a billion sq. ft. by end of 2030 and flexible space will comprise 8-10% of the total office stock".

Flexible space stock crossed 50 million sq. ft. across leading cities in APAC during Q1 2019; in India, this stock exceeded 20 million sq. ft. This consistent growth in the country was a result of operators leasing medium- to large-sized spaces across cities.

CBRE Research
The number of small- to medium-sized deals (20,000 - 100,000 sq. ft.) rose from 52% in H1 2018 to 61% in H1 2019. Moreover, the number of large-sized deals (exceeding 100,000 sq. ft.) increased from 6% to 13% y-o-y in H1 2019.

Mr. Ram Chandnani, Managing Director, Advisory and Transaction Services India, CBRE, said, "Customized enterprise solutions provided by operators offer a competitive advantage as well as enable them to retain tenants for a longer term. This is expected to continue to attract established corporates towards the flexible space segment."

Some of the key trends visible in H1 2019 include:

Increasing occupancy rate – This is primarily a result of established corporates leasing large-sized spaces in recent times, in order to provide 'free addressing' options as well as improve agility of their RE portfolios.

CBRE Research
New sources of funding – We are witnessing rising instances of angel / PE funding as well as of operators joining hands with developers to operate on a revenue sharing model. An instance of funding during H1 2019 is of Workspace receiving INR 30 crore from SmartOwner Capital Growth Fund. We expect to see more creative funding avenues such as profit-sharing and management agreements going forward.

Penetration into tier II cities – Operators have turned their focus from the top seven cities to tier-II cities such as Jaipur, Goa, Chandigarh and Lucknow in the past few quarters.

OUTLOOK

CBRE expects operators to continue taking up large sized spaces (> 100,000 sq. ft) across cities, moving beyond the top cities to cover other major markets and tier II cities as well. This will continue to strengthen the overall space take-up. Also, the continuously increasing demand for space in non-core micro-markets, coupled with paucity of space in core micro-markets, is likely to result in the former dominating leasing in the future. We also expect the demand for managed office spaces will strengthen in the coming few quarters and become almost comparable to that of hybrid spaces. Moreover, we anticipate this segment will remain high on the investors' radar.

CDE attends the Urban Innovation Summit

CDE recently participated in the Urban Innovation Summit held in Lucknow. The Summit saw a formidable representation of industry experts, government officials, and corporate houses who are working towards the cause Read More ...

Road projects of ₹5 lakh-cr reach contract award stage

In a major booster to the ailing construction equipment and commercial vehicle sector, Union road transport minister Nitin Gadkari has said that the government is rolling out mega road construction projects worth Read More ...

PM launches ₹20,000-cr metro corridors in Mumbai

The Prime Minister during his recent visit to Maharashtra has laid the foundation stones for three metro projects, which will together add more than 42-km to the existing metro rail network in the city. The three corridors Read More ...

Cabinet clears ₹3,439-cr for Konkan rail connectivity

The union cabinet has approved ₹3,439 crore for rail connectivity between Konkan and western Maharashtra linking Vaibhavwadi (Sidhudurg) and Kolhapur. The entire project will be commissioned by the year 2023. According Read More ...

TN takes up ₹3,088-cr multi-deck elevated corridors

The Tamil Nadu government has decided to build a ₹3,088 crore multi-deck elevated transport corridor in Old Mahabalipuram Road (OMR) in a phased manner. The project is aimed at decongesting the road from Taramani to Read More ...

BoB approves ₹2,000-cr for Bundelkahnd e-way project

Bank of Baroda has sanctioned ₹2,000 crore for the ambitious Bundelkahnd Expressway project in Uttar Pradesh. With this initiative, other banks would also be able to fast-track the loan proposals under their consideration Read More ...

Railway explores PPP funding for ₹36,000-cr projects

The Mumbai Railway Vikas Corporation (MRVC) has initiated steps for funding two of its three projects worth ₹36,000 crore proposed under the Mumbai Urban Transport Project (MUTP)-4 on PPP model. The three projects Read More ...

Haryana clears ₹2,196-cr rail lines

The decks have been cleared for construction of two rail lines in Haryana as the Haryana Rail Infrastructure Development Corporation has completed its DPR for ₹2,196 crore rail projects. With the construction Read More ...

Blackstone in JV plans 20-mn sqft realty project

American private equity major Blackstone Group and realty developer K Raheja Corp in a joint venture have decided to take up a jointly-owned 20 million sqft commercial project, said official sources adding that the Read More ...

BEML delivers first driverless coach to Mumbai metro

BEML has recently supplied the first driverless metro coach to Mumbai Metropolitan Area Development Authority's (BMRDA). A part of the order by Mumbai Metro Rail Corporation (BMRC) for 500 coaches, it will be used Read More ...

Decks cleared for riverfront projects in Thane

Decks have been cleared for the river front projects in the Thane area of Mumbai with the Bombay High Court having recently allowed the development of eight waterfront projects, a pet project of the city's municipal Read More ...

BRO launches Miao-Vijoynagar road project in NE

The inspection and soil testing has been initiated by the BRO on Miao-Vijoynagar road project in Changlang district of Arunachal Pradesh, Additional Director General (East), BRO, PKH Singh, said that a meeting Read More ...

Terex celebrates 10 years of success in India; announces new expansion plan

Terex is celebrating a decade of successful operations in India with the announcement of new expansion plans for its 45-acre site in Hosur, Tamil Nadu facility to drive Terex's next growth phase in India, Terex started Read More ...

Valvoline Partners with LiuGong, Enhancing Market Commitment to Customers

Valvoline Inc.and Guangxi Liugong Group Co., Ltd. (LiuGong) held a signing ceremony today in Shanghai to announce a global partnership. Sam Mitchell, CEO of Valvoline, and Mr. Zeng Guang'an, Chairman of LiuGong Group Read More ...

CII CBRE Conference Identifies 'Building Green Real Estate as the Need for a Sustainable Ecosystem

CII in association with its knowledge partner CBRE concluded the 9th Regional Conference on Infrastructure Management with the theme ‘Building GREEN Real Estate'. The CII CBRE conference aimed to focus on building a Read More ...

NHAI unveils ₹868-cr new connect to DME e-way

To deal with the likely traffic congestion once all phases of the Delhi-Meerut Expressway is commissioned, NHAI has decided to develop a portion of NH-235 to serve as an alternative route to the Hapur-Meerut stretch of Read More ...
NBM&CW

New Building Material & Construction World

New Building Material & Construction World
MGS Architecture

Modern Green Structures & Architecture

Modern Green Structures & Architecture
L&ST

Lifting & Specialized Transport

Lifting & Specialized Transport
II&TW

Indian Infrastructure & Tenders Week

Indian Infrastructure & Tenders Week