Corporate are now seeking spaces at coworking spaces. This goes against the narrative that, coworking spaces are for start ups and small or medium enterprises.
By Varun Singh
Corporate, or rather big corporate firms are opting for coworking spaces in the country.
According to a study by JLL India, close to 40-45% of the total demand for coworking spaces emanated from corporate and big corporate firms.
The demand was then followed by SMEs which contributed to 35-40% and 15-25% demand came from start-ups.
“Several corporate are now moving into coworking spaces. The reason they want to provide an appealing work environment to their employees,” says Ramesh Nair CEO & Country Head, JLL India.
There are benefits like flexible leasing, along with added membership benefits, which reduces the expenses of running an office space by approximately 15-20%.
Coworking spaces provide a holistic approach which consciously and cost-effectively aims to address the employee engagement and real estate needs of all companies, big and small, as well as real estate owners and landlords.
With the introduction of coworking spaces and their expansive acceptance in the country, the industry has changed notions about what a typical workspace is and what the functions of a healthy work environment should be.
Nair says, “Earlier the industry was less agile to the changing market and demographic forces, it is now understanding and incorporating elements that can expand and contract operations quickly and give a range of options to its workforce.”
The growing popularity of coworking spaces can be seen by the spike in share of coworking in total office leasing. The share of coworking in total office leasing spiked up to 14% in 2019 from 8% in 2018.
Coworking spaces in India are evolving too. The demands of an office space even in India at a coworking is different than the global trends.
Operators are shifting their focus by offering more closed office spaces and fixed seats as opposed to hot desks to cater to the need of privacy that corporate normally seeks.
The trend is gaining popularity as the majority of the demand from occupiers is for cabins or closed spaces that have dedicated areas exclusively for the corporate who have taken the space from the operator.
Coworking operators are not limiting themselves to office complexes but expanding their horizons beyond and venturing into shopping malls, hotels and metro stations, as well.
Landlords and developers have also realised the potential of coworking spaces as reputed brands working out of such spaces also add to the value proposition of the building.
Nair ends, “The positive impact that coworking spaces have had on employee productivity for corporate and the health of commercial real estate for developers cannot be ignored. Coworking as a segment is expected to expand significantly across several industries and sectors due to a multitude of leasing options and an ocean of choices that are made available, tailored to individuals as well as small and large organisations.”