Flexible workspace providers see higher demand from AI firms
WeWork India, IndiQube, Table Space, Incuspaze, and other flex office operators have attracted AI firms as tenants for their centers. These firms have leased between 50 to 700 seats in the flexible workspaces offered by these operators. This trend showcases the growing demand for flexible workspaces among AI companies seeking scalability and agility in their operations. By partnering with flex office operators, AI firms can benefit from the dynamic work environment and amenities provided by these spaces. The collaboration between flex office operators and AI firms reflects the changing landscape of work preferences and office solutions in the modern business world.
AI Companies Driving Demand for Flexible Workspaces in India
Bengaluru: Flexible workspace providers are seeing higher demand for office space from artificial intelligence companies and AI-first businesses, with a bulk of the leasing happening in Bengaluru, Pune, and Hyderabad. Flex office operators such as WeWork India, IndiQube, Table Space, Incuspaze, and others have signed on AI firms as tenants for 50-700 seats in their centers.
Increased Leasing Activity
Leading shared workspace firms WeWork India and IndiQube have signed multiple deals with AI startups in Bengaluru and other cities in the last year or so. For instance, WeWork India has signed lease transactions with companies such as Asper.ai Technologies Pvt Ltd, an AI platform for consumer goods, and Eightfold AI India Pvt Ltd, a talent intelligence platform. Spokespersons of WeWork India and IndiQube, both in IPO mode, declined to comment.
“AI is one of the most dynamic and fast-growing sectors today, and at Table Space, we are seeing increasing demand from AI-first companies. As these businesses scale and adapt to market shifts, flexible workspaces offer the ideal solution—allowing expansion, quick pivots, and operational efficiency," said Karan Chopra, co-CEO and chairman, Table Space.
Emerging Hotspots
“We are particularly seeing Pune and Hyderabad emerge as hotspots for AI and tech-focused clients who require office space," he said. A 2024 report by Nasscom and Boston Consulting Group said the AI market in India is projected to grow at 25-35% compounded average growth rate till 2027, supported by a large AI talent base and high investments.
Specialized Workspaces
Manas Mehrotra, founder of 315Work Avenue, said AI firms prefer mid-to-large spaces in prime locations, offering flexibility to grow and access talent. In addition to AI, deep-tech startups are now leveraging flexible workspaces to facilitate quick scaling and changing infrastructure demands.
In the recent past, Mehrotra said several companies specializing in big data analytics, insights-led customer engagement platforms, and AI solutions firms have chosen 315Work Avenue’s customized workspaces. Managed and flexible office spaces work well for AI-led businesses that have been expanding and raising fresh funding.
Advantages of Flexible Workspaces
Rahul Arora, head-office leasing and retail services, senior managing director (Karnataka, Kerala), India, JLL, a property advisory, said emerging sectors, particularly AI and ML (machine learning), are popular and driving demand for office space. Flexible workspaces have become increasingly attractive in this landscape, offering numerous advantages. Such workspaces require minimal upfront investment, can be acquired swiftly, and provide tailored solutions to meet diverse business needs.
Diverse Locations and Demands
Hanto Workspace has partnered with AI-driven firms for long-term workspace solutions. While the average space allocation per employee in conventional startups is 40-50 sq. ft, AI startups require 90-100 sq. ft per person. Preferred locations include tech hubs and business districts in Bengaluru, such as Koramangala, HSR Layout, and Whitefield.
Expanding Markets
While Bengaluru remains the primary hub due to its strong tech ecosystem, flex office operator Incuspaze said it is also seeing interest in Hyderabad, Pune, Gurugram, and Chennai, where AI startups and research and development centers are expanding. The demand is being driven by a mix of early-stage AI startups, research-driven firms, and larger tech companies setting up AI divisions.