TEC plans to touch 1 million sq. ft office space in India by December

Flexible office space operator The Executive Centre (TEC) is set to ramp up its presence in India with plans to add 250,000 sq. feet of office space over the next year.

The office space addition includes 100,000 sq. feet in Bengaluru. It is also looking at adding space in other cities such as Gurgaon, Pune, Chennai, Mumbai. The company is looking at significant expansion in Hyderabad during 2021. “We are currently in advanced discussions with real estate developers for Grade A premium office space in Hyderabad,” said Manish Khedia, Director - Bengaluru and Hyderabad, The Executive Centre.

This year, the TEC is planning to open two new centres at Bengaluru’s Whitefield in July and near Manyata Tech Park in November. With this, its capacity in Bengaluru will go up to 3 lakh sq. feet.

Since its entry into the Indian market in 2008, TEC has established 28 centres in 7 cities spanning over 800,000 sq. feet. “We will be touching the 1 million sq. feet mark in 2020 once we complete our expansion in the country,” Khedia told DH.

In 2020, the TEC expects to achieve a strong 30% growth in India. “Due to economic slowdown, many corporates have slowed down on the expansion of their own campuses and instead they are opting to grow in a flexible office space like TEC,” says Neha Verma, Regional Marketing Manager - India, Sri Lanka and the Middle East.

She said the flexible office space market has grown from just about 0.5% of the total office leasing in 2008 to 17% of the total office space leasing in 2019-20. Last year, the country witnessing leasing of 56 million sq. feet of office space.

TEC provides premium shared office services, enterprise solutions, private, virtual, and co-working spaces, each equipped with meeting facilities, video conferencing and a broad range of business concierge services. Most of its centres are in the most prestigious buildings in the central business district of each city.

Some of its marquee clients include Gartner, Google, Facebook, Netflix, Salesforce and Akamai among others.

The Executive Centre’s average tenancy is 36 months and it has seen 100% occupation in most of its centres.

Globally, The Executive Centre has a presence in over 135 centres across 32 cities and 14 countries including Greater China, Southeast Asia, North Asia, India, Sri Lanka, Australia and West Asia. It is the third-largest serviced office business in Asia with an annual turnover in excess of $275 million. Since its foundation in 1994, it has built a membership of over 27,000 professionals occupying 3.03 million sq. feet of a collaborative workspace.

Customised solutions

The TEC has embarked on providing completely customised office solutions to enterprises in India. It recently provided complete turnkey solutions to a global tech giant, which is a Fortune 50 firm, in Bengaluru. The office is spread across 50,000 sq. feet and is equipped with high-end security solutions and a five-star category office premises, Khedia said.

“We are looking at growing this business in India and we have around 3-4 such projects on hand for this year in Bengaluru, Gurgaon, Mumbai and Hyderabad,” Khedia added.

For the year ended 2019, TEC reported a revenue of Rs 260 crore in India and is looking at in excess of Rs 300 crore for 2020.