Real estate developer M3M has leased 220,000 square feet to flexible workspace provider Incuspaze at its boutique office project M3M Urbana Premium on Golf Course Extension Road, people familiar with the deal said.
“M3M is embarking on a major office leasing drive this year and aims to lease 2 million square feet of Grade-A office space in the most sought-after locations in Gurugram. Accordingly, we have signed a mega deal with Incuspaze – a leading flexible workspace provider – where they have been provided with 2,20,000 square feet of space on lease,” said Sudeep Bhatt, President, M3M.
In a strategic move, M3M is considering holding premium office space as a proprietary asset class this year to better focus on providing the best workspace for the growing demand in the office space segment. M3M today has an impressive portfolio of 56 projects spread across Gurugram, Noida and Panipat, covering an area of 6 million sq.ft.
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The flex workspace market is expected to grow from 55 million square feet to 100-140 million square feet by 2030. “The Golf Course Extension Road and Udyat Vihar locations are critical for businesses looking for connectivity and convenience,” said Sanjay Chaudhary, Founder and CEO. , Incuspaze.
Following the transaction, the company leased 600,000 square feet of space in three cities last quarter, and the flexible space operator continues to expand in response to growing demand.
Incuspaze operates from 44 locations across 18 cities with a total portfolio of 3 million square feet. “Following the resilience shown by the office sector, we are forecasting a positive outlook for 2024. Growth is driven by multinational companies and centers of global competence. Sustained presence of a skilled talent pool companies attracts a wider spectrum of consumers,” said Sanjay Chatrath, Managing Partner, Inexpaz.
The rise of flex office spaces in India has been a significant trend in recent years. A major benefit of flex office space is the ability to scale up or down according to business needs.
“M3M is developing its commercial portfolio keeping in mind all the needs of our clients. All our commercial properties are best-in-class and strategically located in NCR,” said Bhatt of M3M India.
Incuspaze has also leased 150,000 sq ft in Pune, 350,000 sq ft in Gurgaon's Udyat Vihar and 60,000 sq ft in Jaipur as it looks to add 1.5 million sq ft by 2024.
Additionally, traditional office spaces in prime locations often come with high rents and long-term lease agreements. Flex office spaces offer a more cost-effective alternative, as businesses can rent only the space they need for a specific period, avoiding huge costs and long-term commitments.