How Flex can it be?

How “Flex” can it be?

Ask T-Mobile US.

Flex offices are increasingly sought after. Shorter lease terms, more flexible space additions, full managed, and all at a premium.

And I haven’t seen any other market worldwide that is so advanced in Flex as India is.

T-Mobile US is a prime example:

Around 250,000 sqft
1,500 workstations
60 months lease (lock-in period 42 months)
EUR 52 million committed

So why does it work in India but less so in other markets?

One point surely is the ecosystem that provides for it. You have some of the world’s largest flex operators here, and they are profitable. Also, synergies with tech park developers help, but most importantly:

Unknown demand.

Companies are just not sure how fast they will grow, and most grow faster than expected. Most GCCs in India outgrow their initial footprint within 18 months.

Flex absorbs that without a renegotiation, and allows them to manage this in the best way possible, reducing friction and CapEx at the same time.

So for European businesses entering India: the market is highly mature and you should think of this model.

For European real estate players: are you tracking India's flex operators as a benchmark, or still treating it as a different market?


Source: The Economic Times

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