As per a C-Suite Survey conducted by Colliers and Awfis, about 35% of the companies have seen a majority (75-100%) of employees returning to offices.
Key highlights of the report include:
- Telecom and Consulting sectors see the highest (75-100%) rate of return to office.
- 74% of companies are looking to opt for distributed workspaces.
- About 53% of occupiers prefer working from home + office as their preferred workplace portfolio strategy.
- About 49% of the occupiers are likely to adopt flex centres to enable distributed workspace.
This includes a hybrid way of working wherein employees come into the office a few times a week. After a gap of two years, return to offices has gathered momentum with ebbing Covid-19 cases, signifying positive occupier confidence.
At the same time, about 74% of the occupiers are looking toward distributed workspaces as a strategy to shift from location-centric to people-centric workspaces. This will enable flexibility to employees while furthering productivity gains for businesses.
The Colliers and Awfis joint report explores the status of return to work across different sectors. It delves into how occupiers are likely to choose distributed workspaces and devise flex space strategies by understanding their current usage patterns and preferences.
- 60-70% Consulting and Telecom companies have the highest (75-100%) rate of return to office.
- 74% of companies looking to opt for distributed workspaces.
- 53% of companies prefer working from home + office as their preferred portfolio strategy.
- Telecom and Consulting sectors see the highest (75-100%) rate of return to office Sectors with the lowest (0-25%) rate of return are IT and New Technology companies.
- About 74% of the occupiers are likely to adopt distributed workspace.
- About 53% of occupiers prefer working from home + office as their preferred workplace portfolio strategy.
- About 49% of the occupiers are likely to adopt flex centres to enable distributed workspace, followed by setting up their own offices in metro and non-metro cities.
Ramesh Nair, Chief Executive Officer India, and Managing Director, Market Development Asia, Colliers said, “The survey has made it clear that a distributed workspace strategy is the way to go for occupiers in this new era of experiential workplaces, as occupiers emerge from the after-effects of the pandemic.”
“Flex spaces, in particular, are leading this growth, as occupiers from varied sectors are housing teams in flex centres across cities. This shift in strategy is also reflected in the leasing by flex operators – flex operators leased about 3.5 million sq feet of space in H1 2022 across the top six cities, almost three-fourths of the flex leasing in the entire 2021”, Ramesh Nair said.
Ramesh Nair said, “Further, the survey reveals that as occupiers straddle business goals and employee wellbeing together, about 74% of the occupiers are looking at distributed workspace, and more than half of the IT/ITeS companies (the largest occupier group) prefer a distributed work model for their employees.”
“Therefore, we can see opportunities for flex spaces not only in metro cities but also in non-metro cities. In fact, in non-metro cities, total flex spaces are likely to grow more than two-fold to 5.5 million sq feet by the end of 2022”, Ramesh Nair further said.
About 53% of occupiers prefer working from home + office as their preferred strategy
About 53% of the occupiers prefer a hybrid workplace plan for their employees, with working from home + office in varying degrees.
Time and cost savings, increased employee convenience, and overall well-being of employees are key priorities for occupiers, as they look to enable distributed workspace strategy.
About 79% of the occupiers who are ready to opt for flex spaces see time and cost savings as major benefits. Clearly, pursuing business goals in tandem with benefits to employees is at the core of occupiers’ interest.
Flex spaces emerge as the most popular way to enable distributed workspaces:
In H1 2022, flex operators leased about 3.5 million sq feet, accounting for about 13% of the overall leasing, in line with the surging demand for flex space by occupiers.
Almost half of the occupiers said they will prefer to adopt flex spaces as a mode to enable distributed workspace. Interestingly, even non-metro cities are seeing a growth of flex spaces as occupiers look towards distributed workspaces.
