Thoughtful design, colorful interiors, flexible timings, unconventional perks, lower cost of operations and maintenance- benefits of coworking space are endless and enticing. No wonder, the formula has become the go-to option not only for individuals, freelancers, startups and SMEs but also for medium and large corporates.
According to report released by real estate consultant JLL, leasing in flexible office space has shown upward trend throughout the country. It also states that cumulative space released by co working firms in the last two years has doubled from 2017 to 2018 and is expected to further increase in 2019 in Grade A buildings.
In 2017, 1.9 million sq ft was leased by coworking spaces while in 2018 it was 3.9 million sq ft. The first quarter of 2019 has already seen the flexible working space adding 1.1 million sq ft area to the already existing space.
Delhi-NCR, after Bengaluru and Chennai, has shown the third-highest increase in flexible office space, as large deals in 2018 took the coworking share from 4% to 9% of the total in office-leasing space in the region.
In NCR, it is Gurugram that has emerged as the most preferred location for flexible workspace operators in Delhi-NCR. Another report by Colliers research states that 64% of new leases in 2018 were made here.
Inside Gurugram, maximum activity is seen in main three micro-markets namely Cyber City, Golf Course Road, and Udyog Vihar, where major flexible space operators have leased space, some of which are offering customized solutions based on demand.
Some major deals have happened in 2018 which saw an overall change of Gurugram’s co-working scene. WeWork opened a 2.25 lakh sq ft shared office space at DLF Cyber City in DLF Forum and a 1.2 lakh sq ft space at Two Horizon Centre at Golf Course Road which was accompanied by a 75,000 sq ft space launch by 91 Springboard in Udyog Vihar.
2019 saw a launch by Skootr, which leased 22,000 sq ft of office space at DLF Square, and GoHive, which leased 50,000 sq ft of space in Udyog Vihar. Another player Garage Society launched nearly 19,000 sq ft of space at Cyber City.
Super-easy flexibility of scaling up or downsizing, an opportunity to network, and communities to evolve and have a space for like-minded professionals to come together are some of features that are attracting millennials to such working arrangements.
The segment which was until a short while ago was considered niche is expected to become mainstream soon and will play a a key role in the growth of the office real estate in the next few years.
“Over the next three years, we expect the flexible workspace market to grow rapidly with the rise in demand from large companies and start-ups alike,” HT quoted Sanjay Chatrath, managing director, North, Colliers International India, as saying. “We expect occupiers from information technology, business process management, banking, financial services, and investments, as well as the fast-moving consumer goods (FMCG) sector to continue taking up space in flexible workspace centers.”
More on coworking segment here.