FLEX-SPACES EVOLVE WITH ASSET-LED PARTNERSHIPS

The strategic shift in commercial office development is led by flex space operators who are integrating design agility, smart technology, and long-term asset partnerships. Flex operators are no longer just tenants—they’re becoming strategic partners in asset transformation. According to Sanjay Chatrath, Co-founder & Managing Partner, Incuspaze, “What began as open-plan co-working zones—buzzing with beanbags, breakout corners, and shared desks— has evolved into a more structured, enterprise-ready format. Today, flex offices dominate the conversation, offering enclosed suites, branded environments, and modular layouts that balance privacy with community.”

“As demand for managed offices grows, developers are increasingly collaborating with workspace providers to revamp underperforming buildings, upgrade infrastructure, and attract long-term occupiers. These partnerships are reshaping how value is created, measured, and sustained,” said Mukul Pasricha, Founder & CEO, Spring House Workspaces

“With nearly 100 million sq. ft. of f lex space now active across India, the segment is no longer a fringe alternative—it’s a core component of enterprise real estate strategy. As demand surges post-pandemic, operators are rethinking everything from floorplate design to digital infrastructure, while developers increasingly view flex partnerships as a route to higher asset value and consistent rental yields,” shared Utkarsh Kawatra, Founder & CEO, myHQ.

Asset Partnerships
The model is simple but powerful: operators invest capital into a property—revamping common areas, improving mechanical systems, and enhancing tenant amenities. In return, they secure long-term leases and build environments tailored to evolving occupier needs. “When operators invest capex into a building, they’re incentivized to stay longer,” said Mukul Pasricha. “It’s like the hotel business—the returns come over t ime, and consistency matters more than short-term yield. That stability is what developers are beginning to value.” Sanjay Chatrath gave an example of Incuspaze’s partnership for a half-million sq. ft. campus, where collaborative upgrades led to a valuation jump of over 2x in four years. “As operators move toward asset-heavy models— owning buildings rather than leasing—the potential for deeper transformation grows. The flex industry is no longer just about space—it’s about stewardship, scale, and long term impact,” he said.

Rise of Managed Offices
39 Post Covid things have changed a lot in office real estate demand. Earlier it was more about occupancy of seats, now it’s about square footage. Office space real estate is about to touch a billion square foot across India and 10% of that is flex spaces, which is only going to rise up going forward. here. “Earlier it was all about open space. Now, most enterprise transactions demand enclosed, dedicated offices. We still build collaborative zones, but the core shift is toward private, branded environments. Clients want their own identity, their own layout, and the ability to scale without compromising privacy,” said Sanjay Chatrath. “This shift reflects a deeper change in how companies perceive workspace utility. Startups with 50–100 employees now seek dedicated zones that mirror their brand ethos, while larger firms demand scalable layouts that can accommodate fluctuating headcounts. The emphasis is no longer just on collaboration—it’s on control, customization, and continuity,” stated Utkarsh Kawatra. The hybrid approach—private space within a shared ecosystem—is redefining how commercial offices are built, leased, and experienced.

Long-Term Value Creation
In the fast-evolving office landscape, technology has moved from the backend to the boardroom. For the flex-space occupiers, the shift is palpable. Instead of spending weeks coordinating with brokers, consultants, and fit-out teams, companies can now shortlist, visualize, and customize office spaces in a matter of minutes. Platforms like Office IO are integrating search, design, and service bundles into a single interface that delivers cost estimates, layout options, and even virtual execution tracking. “What was once a support function is now central to how f lex operators acquire, manage, and monetize commercial space.

Tech helps clients find the right space faster, track leases, and even book meeting rooms—all at the click of a button. Our goal is to reduce a two-week search and fit-out process to five minutes,” said Utkarsh Kawatra. “The managed offices have been able to provide smaller companies in particular an office within a larger campus, where they can showcase their brand individuality, yet also benefit from the sense of community with the larger organizations by sharing a floor plate or campus with other companies. Such a model is on the rise and this works for both the operators and the companies, because of economy scales,” concluded Mukul Pasricha