Flexible Office Space Demand Set for Surge in 2025

The demand for flexible office space is expected to rise significantly in 2025, driven by corporate preference for agile and cost-effective workspace solutions. Market leaders are prepared to expand offerings, capitalizing on hybrid work trends and policies encouraging startup growth.

Flexible office space providers are optimistic about increased demand for managed workspaces in 2025, as companies aim to cut overhead costs by embracing agile solutions. Many operators are gearing up to enter the capital markets to fund expansion efforts.

According to Cushman & Wakefield, gross leasing of office spaces reached an unprecedented 885.2 lakh square feet across eight major cities in 2024. Flexible office space operators rented significant space from real estate developers for leasing to various enterprises.

Bengaluru-based Simpliwork Offices, led by CEO Kunal Walia, plans to expand its portfolio to meet the growing demand driven by hybrid work models. Similarly, NCR-based The Office Pass co-founder Nikhil Madan and BHIVE Workspaces CEO Shesh Rao Paplikar highlighted increased demand due to evolving work culture and startup growth.

(With inputs from agencies.)