Market Report
Flex spaces reshaping tier-2 office markets
GCCs to drive the next decade of growth
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Key Insights
1
8.8 Mn sq. ft. of flex stock
2
53% contributed by the top 10 flex operators
3
16% of the GCC bases are situated in flex spaces
Key Takeaways
- With more than 575 flex centres and 8.8 Mn sq. ft. of flex stock, Tier-2 cities represent nearly 29% of the total number of flex centres in the country and account for over 9% of pan-India flex stock, showcasing extensive headroom for further expansion.
- Nearly 60% of the flex centres in Tier-2 markets are located in dedicated office buildings or big IT parks and complexes, while approximately 40% of the stock is located in mixed developments, reflecting the limited availability of institutional-grade office assets.
- Around 53% of flex centres occupied by GCCs in Tier-2 cities are situated within Grade-A buildings, while 19% of the flex spaces occupied by GCCs are green-certified - reflecting GCCs’ clear inclination toward higher-quality and ESG-aligned real estate assets.
- More than 200 companies have established over 300 GCC bases in non-metro cities. IT-ITeS sector accounts for the highest proportion of GCC bases at 51.2%, followed by Consulting Services, BFSI, Engineering & Manufacturing sector, and Healthcare & Lifesciences at 13.5%, 12%, 7.4% and 5.2% respectively.
