The short
- Office reality: India Inc’s average HQ footprint down 17% since 2023.
- Reason: Automation reduces headcount; hybrid models cut desk demand.
- Winners: Shared hubs and suburban flex spaces.
- Losers: Legacy leases in CBD zones with “empty Mondays.”
- Emotion: The corner office no longer means power — it often just means unused space.
When the office stopped being a destination
For most of corporate India, 2022 was about getting people back. 2025 is about wondering why they should come at all. In Bengaluru, a 600,000 sq ft HQ now hosts 150 people at peak. In Mumbai, one global tech giant sublet half its floors last quarter. The new question isn’t “Where do we work?” — it’s “What are we paying for?”
Unlike the pandemic exodus, this wave is intentional. CFOs call it “workspace optimization”; employees call it “finally sensible.” The economics are blunt: 30% fewer seats, 15% higher per-seat cost efficiency, and real estate savings that cover AI and automation budgets.
Sector heatmap — who’s shrinking fastest
| Sector | HQ footprint change (2023–25) | Avg desk vacancy (%) | Comment |
|---|---|---|---|
| IT & SaaS | -22% | 45% | High automation, WFH culture stable |
| Banking & Finserv | -12% | 38% | Hybrid frontline, automation at ops hubs |
| Consumer goods | -9% | 30% | Sales travel-heavy; flexible seat rotation |
| Media & Entertainment | -18% | 42% | Creative clusters > static offices |
Source: commercial property disclosures, 2023–2025 lease data (aggregated).
The emotional math of empty desks
Walk through an average HQ on a Thursday, and the silence hums. Plants grow, monitors sleep, the coffee machine blinks. For employees, this is freedom. For facilities teams, it’s anxiety measured in square feet.
HR studies show that productivity hasn’t dropped — belonging has. 74% of hybrid employees report feeling “disconnected” from their company’s physical presence. The irony: the less time people spend in offices, the more symbolic offices become.
How brands are reimagining HQs
- Tata Digital converted two floors into “collab studios” — no assigned desks, just meeting pods with biometric booking.
- Infosys now uses one wing as a permanent training center — blending employee onboarding with remote work demos.
- HDFC Bank turned an entire floor into a “client immersion zone,” complete with VR setups for digital product tours.
Offices are now more showroom than workspace — built for impression, not attendance.
Cost optimization math
Average lease renewal rates in India’s metros rose by 12% in 2025, while headcount growth plateaued. The CFO logic was clear: sublet space, redirect savings to AI training and digital infra. For many firms, real estate is now the new automation fund.
Every 10,000 sq ft shed equals one new generative AI team funded for a year.
What to watch
- 2026 lease renegotiation cycle — could free up another 8–10% office stock.
- Flex operators (Awfis, Smartworks) gaining enterprise anchor clients.
- Employee sentiment pivot: nostalgia for “belonging spaces.”