Finding a quality workspace with various amenities and situated in a prime location of a top metro city isn’t easy as all. Nowadays, a lack of availability of premium office spaces can be seen in cities like Delhi NCR, Mumbai and Bengaluru. So, what are companies doing? They are rewriting the narrative by building their dream offices from the scratch. Businesses are going towards built to suit (BTS) developments to get the workspaces they require. And, what are built to suit developments?
Companies take an under construction property on lease and build it as per their requirement. This trend is becoming a strategic approach for businesses looking to future proof their operations, increase flexibility and create an office environment that aligns with their brand and culture. With the demand for Grade A office spaces exceeding supply, BTS is becoming a wise solution.
Why the Sudden Shift to Built to Suit Offices?
The foundation of this trend is a notable demand-supply imbalance. India is currently facing an annual deficit of approx 20 million square feet of Grade A office spaces. This deficit has been amplified recently due to a decline in construction across key business districts. Some submarkets haven’t introduced any new supply in two years, leading to vacancy rates falling to all time lows of around 5% in reputed locations like Gurugram CBD, Mumbai BKC, Bengaluru ORR and Hyderabad Madhapur.
This scarcity has led businesses to act quickly. More than 100 large leasing deals (100,000+ sq ft) are in negotiation with over 50 signed in the first quarter of 2025 alone. Companies now have two options: either shift operations to secondary locations or acquire spaces in buildings that are under construction.
This is why built to suit offices have become the preferred choice for companies looking for spaces that reflect their identity, culture and work style. For many organisations, especially global capability centres (GCCs) and multinational companies, having a work environment that reflects their standards is non negotiable.
Typically, BTS requirements range from 500,000 to 1 million square feet. These are large, single tenant buildings built for use over the years, giving companies full control over design, layout, tech infrastructure and sustainability features.
Real estate developers are also responding well to this increasing demand. Areas around major airports like Aerocity in Delhi are becoming top locations for such developments. These areas offer easy access, high density of commercial activity and the opportunity to build intelligent business campuses.
Developers across key cities are proving modular, scalable and sustainable office solutions, green certifications, tech enabled infrastructure and flexible layouts. Some are even launching entire towers customised for BTS tenants, with leasing models that provide businesses more freedom during construction.
The market is changing fast. In Q1 2025, more than 50 large BTS lease deals (each over 100,000 sq ft) were finalised and over 100 are under negotiation. Companies that are unable to get ready space in prime locations are pre leasing buildings that are still being constructed to ensure they don’t miss out.
35% of new buildings from the last three years are completely occupied and another 14% are close to full. In some cases, even building under construction are getting leased out months before getting completed.
What Tenants Are Looking For
After the pandemic, the way companies used to view their workspaces has changed. Modern tenants want a space that is:
- Flexible
- Sustainable
- People first
- Tech ready
Built to suit spaces tick all the boxes. Collaborative zones, private areas for concentrated work; the design options are unlimited. Plus with developers providing customsed build outs on long term leases, companies get more control over their future work environment.
What Lies in the Future?
India’s office market ended 2024 on a positive note, with 89 million square feet of gross leasing volume across key cities. However only 45 million sq ft of new Grade A supply reached the market.
BTS is a strategic solution not just a temporary solution for businesses looking for: growth, innovation and talent. With GCCS representing almost 30% of office demand, the future is leaning toward high performance campuses.
As the market moves into 2025, it’s being expected that the supply will recover in suburban regions. But the demand for personalised, efficient and future ready spaces will make sure that built to suit remains in the limelight
Right now, companies are not just looking for square footage, they are ready to invest in an environment that is suitable for them in every possible way. And that’s why custom made is becoming the new standard for companies.
