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A Closer Look at Leasing Trends and Managed Workspaces

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As traditional office spaces transform, managed workspaces are emerging as a pivotal element of India’s office market. The increased demand for flexible spaces reflects the managed office model’s adaptability to the evolving nature of work. The Core spoke with Harsh Binani, co-founder of Smartworks, India’s leading managed workspace platform, spanning over 8 million sq. ft., across 40+ locations in 14 cities.

During the conversation, Harsh Binani provided insights into the surging demand for managed offices and the key factors driving this upward trend. He emphasized that the impact of remote work has been minimal in India due to an early return to office environments.  The rapid economic growth and India’s status as a global office hub have driven substantial demand for office spaces.

Harsh also highlighted the role of Global Capability Centers (GCCs) in driving demand for managed office spaces, constituting a significant chunk of Smartworks’ incremental business.

Per a recent report, the second half of 2023 witnessed a resurgence in Global Capability Centers (GCCs) leasing activity, reaching the highest levels since 2020 at 12.4 million sq ft. The tech sector led the demand, with significant growth observed in BFSI (Banking, Financial Services, and Insurance) and Engineering & Manufacturing. Bengaluru and Hyderabad accounted for 60% of the total GCC demand between 2020-23, while Chennai experienced notable growth. Sub/near dollar markets were pivotal, contributing to almost 80% of the overall GCC leasing.

Major Forbes 2000 companies engaged in core functions such as R&D are increasingly establishing GCCs in India. This trend aligns with the country’s transformation and gains additional momentum from the geopolitical landscape and macroeconomic stability.  The shift towards GCCs is not merely a trend but a strategic decision by these global players to leverage India’s growing capabilities.

Harsh Binani, in his discussion, also highlighted specific aspects of managed workspaces that cater to the evolving demands of modern enterprises. Whether it’s the flexibility in space utilization, advanced technological infrastructure, or the emphasis on creating a collaborative environment, managed workspaces offer features and benefits that align with the expectations of forward-thinking businesses.

In addition, the strategic development of Global Capability Centres underlines India’s crucial role in the world economy. Via developing India’s skilled workforce and desirable business surroundings, various corporations, and understanding of the nation’s potential as a hub of development and innovation.

Also, the prominence of a a modest technological environment within a a maintained workspace aligns with the extensive digital alteration over industries globally. As businesses highlight scalability and agility, the adoptable work surrounding provides a competitive edge in catering to top talent and dynamic organization success. Managed workspaces not only accommodate These embryonic wants but also develop innovation and teamwork amongst varied teams.

For a more in-depth exploration of the nuances surrounding managed workspaces and India’s ascent as a global hub for companies, tune in to The Core’s podcast featuring Harsh Binani. Gain valuable insights into the evolving landscape of office spaces, the role of flexibility in shaping the future of work, and the unique advantages India presents as a global business destination. Stay informed and ahead of the curve in this transformative era of office dynamics.

 

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