CoWrks- A flexible office space operator and India’s only large format coworking space provider has recently signed a mega deal for 400,000 sq ft of office space across Mumbai, Delhi and Bengaluru to expand its presence in the country.
The deal is said to be one of the largest in flexible office space leasing in India. Spread across 1.6 lakh square feet CoWorks plans to beef up its total portfolio to 2.3 million sq ft by 2019.
According to Siddharth Menda, CEO, CoWrks, “There is a growing demand for agile spaces and we are seeing good demand from across sectors before we even launch. Currently, we are 100% pre-committee.”
Talking about the increasing demand of coworking spaces in India, a recent survey by a real estate firm shows that co-working firms leased 19 lakh sqft in January-June 2018 as compared with mere 6.4 lakh sqft in the first half of 2017. In 2017, co-working took 5% of the leased space in the country.
The survey also said, “Many startups and other small companies prefer co-working spaces to conventional office spaces due to lower rentals. Hence, savings on operational costs and a more flexible work environment. A company can save as much as 30% on the operational cost alone.”
Co-working is a western style of work that involves a shared workplace, often an office, and independent activity. Co-working helps companies to save on other operational costs such as IT infrastructure, fitments, housekeeping, broadband connectivity etc.
Also, co-working spaces lock-in period ranges from one to three years, on the other hand, the lock-in period for conventional office spaces is for five years, followed by another five years, or for three years, followed by two extensions for a similar period.