Tier II cities are rapidly emerging as commercial real estate hotspots, driven by rising operational costs in metros, availability of skilled talent, and improved infrastructure.

Cities like Coimbatore, Bhubaneswar, and Kochi are attracting MNCs and startups alike due to 30-50% lower office rents and a 20-30% lower cost of living compared to Tier I cities. Flexible workspace demand in Tier II/III cities has surged 12% annually, with companies adopting hybrid work models and satellite offices. State Street’s 2.1 lakh sq ft lease in Coimbatore exemplifies this trend. However, challenges remain—limited Grade A office supply, inconsistent infrastructure, and slow internet bandwidth hamper full-scale growth. Addressing these gaps is key to sustaining momentum in India’s evolving office space landscape.