Occupier confidence is improving after one-and-half years. Prices are recovering with evident growth of 21% in a span of three months in Q3 of 2021.
Future Flex – A hybrid & productive workspace approach
Strategic agreements for operators
Traditional leases are giving way to models such as:
•Revenue-share model
•Management contracts
•Hybrid model (fixed minimum rent plus revenue share)
Apart from these, some operators are seen to explore the franchise model,
although that can pose some risk of brand
Choice-based model for occupiers
Occupiers are evaluating the concept of ‘work from near-home’ through
satellite and hub-and-spoke offices. We foresee that these offices will be an
amalgamation of traditional leases and flex spaces.
With gig economy gaining traction, we also predict the need for on-demand
spaces, as occupiers would require space by the hour/week/month for certain
teams. Such space requirements can successfully be driven by flex spaces.
Customized deals for Occupiers
Occupiers are opting for tailor-made mandates with operators for future
expansion and leasing. Flex operators will take up spaces and customize
them as per the occupiers’ needs. However, at the same time, operators are
likely to also incorporate and offer some proportion of ready buildings for
immediate absorption by start-ups and entrepreneurs.
