Share of co-working in office space leasing to increase in 2022 : Experts

01 September 2021

Share of co-working in office space leasing to increase in 2022 : Experts

  • Economic Times

In the Awfis Leadership Summit 2021, industry experts said that recent reports that predicted offices to grow by about 670 million in 2021 and according to the panelists, the number will go up to 750 million by 2022.

Co-working spaces are expected to see a rise in absorption of seats between 20-30%, according to industry experts. Seats absorption is about 15% of the total of office leasing by corporates in 2021 and the share is expected to increase further.

In the The AwFs Leadership Summit 2021, industry experts said that recent reports that predicted offices to grow by about 670 million in 2021 and according to the panelists, the number will go up to 750 million by 2022.

“With more than 75% of the workforce wanting to return to the office, we certainly feel that the commercial real estate business will see a steady increase in demand to 30-35 million sft per annum levels next two years,” said Sanjay Dutt, MD & CEO, Tata Realty and Infrastructure Ltd.

“We have noticed that companies are now focusing on adopting a flexible and dynamic work model; therefore, occupiers desire fexibility in contracts. With nearly 50% of Grade A office real estate now being institutional in terms of ownership, there is drive on asset enhancement with the intent to retain and improve overall customer experience and extract better economic value,” he added.

The demand for CRE is seeing an uptake especially from the IT sector since the cost of operating in India is lower compared to other markets as well as the large pool of talent the country has to offer. A strong penetration of flex office spaces will be seen in Tier II & III cities since organisations want to be closer to employees who have moved back to their hometowns in these cities.

“The ongoing pandemic has had an unprecedented impact across industries and real estate was no exception. However, one of the few resilient sectors in real estate that was able to sustain the disruption caused by the pandemic was the commercial real estate sector. Despite the pandemic’s impact on its operation, culture and the way in which the industry functions, the CRE sector was able to bounce back stronger than ever,” said Amit Ramani, CEO & Founder, AwFs and Vice President, Indian Workspace Association.

India has been on a digital transformation journey and is known as the outsourcing hub of the world. With that journey continuing to grow the industry will see hotelization of spaces by 2030, since flexibility is demanded by the new workforce.

“With respect to crucial learnings from the pandemic, the learnings occupiers derived from the crisis will be very different from an investor’s learning and similarly the lessons that the developers learnt will be something entirely different – the culmination of all these will make real estate a much more robust environment to work in. Going forward, product enhancement is something to watch out for as buildings will have to change in terms of the offering the client is looking for. Developers also need to step into the occupier’s shoes and understand what they want to deliver accordingly,” said Juggy Marwaha, CEO, Prestige Office Ventures.

In the coming years, with hotelization of spaces, residential segments, malls and offices will overlap with each other. Therefore, development companies will become service companies. There is an increased focus on development because of quality supply especially due to lease and up lease models.

“The commercial real estate sector was quick to embrace the evolving business landscape amid the pandemic. With the gradual lifting of lockdown restrictions and the government’s mass vaccinations drive – we can expect businesses to display an increased inclination towards co-working/flexible spaces to meet the evolving real estate requirements,” said Ram Chandnani, Managing Director Advisory & Transaction Services India, CBRE.

The commercial real estate market is predicted to grow from an investor perspective in multiple asset classes. Nearly 50% of the real estate is institutional in terms of ownership, so there is a lot of pressure from investor partner in terms of rental pressure and future retention.

A lot of demand for flex offices can be seen from start up businesses. Corporates are now looking at distributed models of working in tier II & III cities which will give rise to flex spaces.

“In response to COVID-19, commercial real estate stakeholders have adapted quickly on the physical and technology fronts, health and safety and cost controls. Despite the second wave, liquidity and investments are improving as we are witnessing a positive sentiment amongst investors as compared to last year, where they preferred a cautious approach,” said Ramesh Nair, CEO, India & Managing Director, Market Development, Asia at Colliers.

The commercial real estate market needs to see movement beyond renewals towards pre-commitments and built-to-suit office deals, which will create more optimism amongst occupiers.

“We also expect share of flexible workspaces in total demand to increase in the future. Over the next few quarters, we will see more occupiers incorporating best practices to improve and modernize the workplace in terms of refurbishment and design,” Nair said.

This story appeared in the September 01, 2021 issue of  Economic Times and was originally published at: https://m.economictimes.com/industry/services/property-/-cstruction/share-of-co-working-in-office-space-leasing-to-increase-in-2022-experts/articleshow/85830813.cms

 

 

Awfis leases 85,000 sq ft space in Noida, Real Estate News, ET RealEstate

10 May 2022

Awfis leases 85,000 sq ft space in Noida, Real Estate News, ET RealEstate

  • Posted by Awfis Editorial

Currently Awfis has 11 co-working centres in the Delhi-NCR region and the company plans to open 10-15 more centres in the market by the end of 2022.

Awfis, a flexible workspace provider, has leades 85,000 sq ft space in River Side Tower, sector- 125, Noida. The centre will have over 1500 seats and is expected to go live by end of March 2022, the company said in a media release.

Currently Awfis has 11 co-working centres in the Delhi-NCR region and the company plans to open 10-15 more centres in the market by the end of 2022.

Amit Ramani, CEO & Co-Founder of the company said, “We are delighted to partner with River Side Tower to open this new ’workspace in Noida.The sharp recovery and the growing demand for flex workspaces from this region inspired us to continue to create garde-A flex workspaces, so as to facilitate businesses of all size in the market. We are confident that this trend will continue to grow and even the most traditional companies will see merit in setting up hub and spoke offices to help people work in close proximity to their homes allowing them to spend lesser time in commuting.”

The company claims to have launched over 50 centres with 30,000 seats and entered three new markets in the past 15 months.

Awfis plans to open 200 centres across the country by the end of 2022. It currently has 121 centres with 70,000 seats across 14 cities.

This story appeared in the 9 February, 2022 issue of MSRealty and was originally published  at: Awfis leases 85,000 sq ft space in Noida – ET Realty

 

Awfis added 1,500 seats in Noida, leases 85,000 sq ft.

10 May 2022

Awfis added 1,500 seats in Noida, leases 85,000 sq ft.

  • Posted by Rashika Chandorkar

Home-grown flex workspace provider has added over 1,500 seats at a coworking centre in River Side Tower, sector 125, Noida. The new centre, which will go live by end of March 2022, is part of Awfis’ vision of opening 200 centres across the country by the end of 2022.

The centre is spread in 85,000 sq ft area. The flex space adopts a digital-first approach and is equipped with plush and modern amenities whilst maintaining social distancing norms, as mandated.

“We are delighted to partner with River Side Tower to open this new workspace in Noida, which is rapidly emerging as one of India’s leading business hubs for large-scale companies and startups alike,” said Amit Ramani, CEO & Founder.

“In fact, the sharp recovery and the growing demand for flex workspaces from this region inspired us to continue to create grade-A flex workspaces, so as to facilitate businesses of all sizes in the market. We are confident that this trend will continue to grow and even the most traditional companies will see merit in setting up hub & spoke offices to help people work in close proximity to their homes allowing them to spend lesser time in commuting,” he added.

Currently, Awfis has 11 coworking centres in the Delhi-NCR region and the company plans to open 10-15 more centres in the market the by end of 2022.

At the back of strong demand for flex workspaces, Awfis launched 50+ centres with 30,000 seats and entered 3 new markets in the past 15 months. The company currently has 121 centres with 70,000 seats across 14 cities and will continue to strengthen its foothold across India to establish a network of 200 centres in 2022.

Firms in co-working space expanding to tier 1 & 2 cities

10 May 2022

Firms in co-working space expanding to tier 1 & 2 cities

  • Posted by Awfis Editorial

Co-working operators are expandinginto tier-1 and tier-2 cities, driven by the adoption of the hub-and-spoke model by organisations, reverse migration of employees to their hometowns, affordable office rental costs, a growing startup ecosystem and the availability of talent, said industry executives. Large companies are now asking for multi-city space from co-working companies. “We have closed multi-city deals with our existing large enterprise clients in IT/ITeS, BFSI (banking, financial services and insurance), especially in markets like Pune, Noida, Hyderabad, and Bengaluru,” said Harsh Binani, Co-Founder, Smartworks.

In the past six months, demand for tech-enabled managed workspaces has grown threefold, according to industry experts. “With Covid-19 subsiding, we have been observing a substantial increase in the number of queries for our office as an outsourced service. Corporates are determined to lease and divest their office spaces to avoid unwanted longterm commitments and capital expenditures, “said Ankit Jain, Director, Skootr. The company plans rapid expansion in Bengaluru, Mumbai, Pune and Noida in 2022 to cater to the growing demand for offices.

Corporate occupiers are looking for portfolio re-optimisation and focusing on the concept of managed office spaces. “We have sold 6x more seats in the last three months than what we used to sell pre-Covid, with a huge chunk under our demand-led supply model for mid-to-large-sized corporates across tier-1 and 2 cities. We are working towards further expanding our base pan-India with 200 centres by the end of 2022,” said Amit Ramani, Founder & CEO, Awfis.

Half of a large co-working operator’s demand now comes from large occupiers who want satellite offices under the hub-and-spoke model. “For all practical reasons, co-working spaces are the most preferred option for companies to satisfy this demand,” said Nikhil Madan, co-founder, The Office Pass.

According to international property consultant Savills India, about 23% of the leasing in the first two months was for flex and serviced offices. “The first two months of the year have been where we are seeing a shift toward flexible and serviced office solutions. Also, tech demand is likely to pick up with a very strong return to office sentiment,” said Shweta Sawhney, Managing Director, Delhi-NCR, Savills India.

This story appeared in the 23 March, 2022 issue of BrickAcres and was originally published  at : Firms in co-working space expanding to tier 1 & 2 cities- The Economic Times