WeWork has leased a total of 143,000 square feet of office space at Embassy Golf Links Business Park in Bengaluru to IBM and OpenText. IBM secured 73,000 sq. ft., while OpenText took 70,000 sq. ft., both for two years. The growing demand for managed office spaces, particularly from the IT sector, is driving these transactions. Recent reports indicate that flexible office space in India reached 58 million square feet in the first half of 2024, with the IT sector accounting for half of the total absorption. IBM also renewed a separate lease for 830,000 sq. ft. in Bengaluru.
WeWork, a flexible office operating company, has leased 143,000 square feet of office space to IBM and OpenText at its facility in Embassy Golf Links Business Park, Bengaluru. IBM has secured 73,000 sq. ft. for a 2-year term, while Canadian firm OpenText has taken 70,000 sq. ft. for the same duration, with both facilities accommodating up to 600 seats.
An industry insider indicated that there is a growing demand for managed office space among enterprises and mentioned that both companies are expected to commence operations soon. WeWork had not responded to an email from ET prior to the press time on Wednesday.
According to a recent report by Cushman & Wakefield, the supply of flexible office space in India reached 58 million square feet in the first half of 2024, accounting for a record 27% of total office leasing activity. The information technology (IT) sector is the predominant user of these workspaces, representing 50% of total absorption this year, followed by the engineering and manufacturing sector at 18%, and banking, financial services, and insurance (BFSI) at 12%. In August, IBM also secured a lease renewal for approximately 830,000 sq. ft. of office space in Bengaluru, with an annual rental cost of INR 143 crore.
In conclusion, the increasing demand for managed office spaces reflects a significant shift in enterprise work environments, particularly in the IT sector. As companies like IBM and OpenText expand their presence in flexible workspaces, the trend indicates a robust future for flexible office solutions in India's evolving commercial landscape.
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