# Flex offices could steady REIT portfolios across cycles: Report

2026-08-21T03:57:05+00:00 | Business & Economy | Indian Opinion Desk

Corroboration: 1 independent outlet

Flexible workspaces managed by professional operators can help make Indian real estate investment trust (REIT) portfolios more resilient during market cycles, said Khedia, citing the model's ability to activate underutilised space and serve fast-growing firms avoiding long-term commitments. Premium flex offices offer hospitality services, tech infrastructure and wellness design, which could boost tenant retention and reduce vacancy rates for landlords. This strategy aims to complement rather than replace conventional long-term leasing. REITs that incorporate enterprise-grade flexible workspace are better placed to maintain high occupancy and support rental growth at lease renewals, Khedia argued. He described a growing 'flight to quality' among occupiers valuing workplace experience as a talent tool. The core-plus-flex model balances predictable income from long-term leases with adaptability to shifting demand, potentially building resilience across market cycles.

## Indian Opinion Analysis

Real estate investment trusts (REITs) in India are traditionally anchored in long-term leases for stable cash flows. The suggestion of weaving flexible workspaces into their portfolios reflects the broader shift in workplace demand post-pandemic, where corporates prize agility. For retail investors in REITs such as Embassy Office Parks or Mindspace Business Parks, the potential brings two conflicting risks: vacancy from tenants leaving and rental volatility from shorter leases. SEBI’s frameworks currently require REITs to hold 80% of their assets in completed and revenue-generating properties, meaning any flex-office strategy must remain within these bounds. Investors should watch occupancy data and rental spreads in upcoming quarterly results to gauge which managers execute this model successfully without sacrificing income predictability.

## Coverage

- businesstoday.in <https://www.businesstoday.in/real-estate/story/can-flex-offices-make-reit-portfolios-more-resilient-across-market-cycles-550202-2026-08-20?utm_source=rssfeed>
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This story was synthesised by AI from the source linked above.

Tags: Embassy Office Parks REIT, Mindspace Business Parks REIT, SEBI
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