The company expects annual revenue to touch Rs 100 crore from emerging metros over the next 12 months

Co-working company Awfis is expected to touch 0.6 mn sq. ft. by the end of the year after it expands to seven Tier 2 cities such as Jaipur, Indore and Bhubaneshwar and sets up more centres in existing cities such as Ahmedabad and Chandigarh.  This will translate to around Rs 100 crore of annual recurring revenue over the next one year, Amit Ramani, founder and CEO, Awfis told Moneycontrol.

“The expansion in flexible office spaces across cities is driven largely due to the hybrid work model. Flexibility and speed are driving even large occupiers to go into Tier 2 cities to source talent, and footprint of flexible office spaces in Tier 2 cities is expected to almost double this year,” he said.

Consulting and telecom companies have the highest rate of return to office; 80 percent of e-commerce companies have witnessed only up to 50 percent rate of return among employees

After almost three waves of COVID-19, about 35 percent of office occupiers have seen almost 75 to 100 percent of employees returning to offices. This includes the hybrid way of working wherein employees come into the office a few times a week, according to a C-Suite Survey conducted by Colliers and Awfis.

Telecom and Consulting sectors see the highest (75-100 percent) rate of return to office. Sectors with the lowest (0-25 percent) rate of return are IT and new technology companies, it noted.

About 53 percent of occupiers prefer working from home and office as their preferred workplace portfolio strategy. About 49 percent of the occupiers are likely to adopt flex centres to enable distributed workspace, followed by setting up their own offices in metro and non-metro cities, it said.

In H1 2022, flex operators leased about 3.5 million sq feet, accounting for about 13 percent of the overall leasing, in line with the surging demand for flex space by occupiers. Almost half of the occupiers said they will prefer to adopt flex spaces as a mode to enable distributed workspace. Interestingly, even non-metro cities are seeing a growth of flex spaces as occupiers look towards distributed workspaces, the survey said.

The Colliers and Awfis Survey explores the status of return to work across different sectors. It delves into how occupiers are likely to choose distributed workspaces and devise flex space strategies by understanding their current usage patterns and preferences.

The survey was conducted during May-June 2022 for occupiers across different sectors such as IT/ITeS, BFSI, engineering and manufacturing, and others. A total of about 150 responses were received from C-Suite executives spanning founders, CEOs, COOs and CHROs of various companies. The company size of the respondents varied, starting from the range of 1-500 employees to companies having over 10,000 employees.

“The survey has made it clear that a distributed workspace strategy is the way to go for occupiers in this new era of experiential workplaces, as occupiers emerge from the after-effects of the pandemic. Flex spaces, in particular, are leading this growth, as occupiers from varied sectors are housing teams in flex centres across cities. This shift in strategy also reflects in the leasing by flex operators – flex operators leased about 3.5 million sq ft of space in H1 2022 across the top six cities, almost three-fourths of the flex leasing in the entire 2021,” said Ramesh Nair, Chief Executive Officer, India and Managing Director, Market Development, Asia, Colliers.

Further, the survey reveals that as occupiers straddle business goals and employee wellbeing together, about 74 percent of the occupiers are looking at distributed workspace, and more than half of the IT/ITeS companies (the largest occupier group) prefer a distributed work model for their employees. Therefore, we can see opportunities for flex spaces not only in metro cities but also in non-metro cities. In fact, in non-metro cities, total flex spaces are likely to grow more than two-fold to 5.5 million sq  ft by the end of 2022, he said.

“The findings of the survey are a testament to the success of the distributed work model and subsequently of flex spaces in catering to the ever-evolved workspace needs of India Inc. The survey unveils that currently 74 percent of occupiers have adopted flex centres for their workspace needs, given the multiple benefits associated with flex working. Going forward, 77 percent of occupiers will include flex spaces as part of their workplace strategy. We expect exceptional demand in the future, driven largely by large corporates for de-densification of existing traditional offices,” said Amit Ramani, founder and CEO, Awfis.

“About 90 percent of the occupiers from e-commerce and consulting sectors are likely to include flex space in their current portfolio. Occupiers see dual benefits arising out of distributed workspaces. They view time and cost-saving benefits followed by better work-life balance for employees,” said Vimal Nadar, Senior Director and Head of Research, Colliers India.

This story appeared in the 3 August, 2022 issue of Money Control and was originally published at: Return to work: After a gap of two years, 35% companies see 75% employees returning to office

In a statement, Awfis said it has opened its first premium category centre ‘Awfis Gold’ in Mumbai.

Co-working operator Awfis on July 12 said it has partnered with Blackstone group firm Nucleus Office Parks for a new centre in Mumbai with a seating capacity of 450.

In a statement, Awfis said it has opened its first premium category centre ‘Awfis Gold’ in Mumbai.

This centre has been launched in partnership with Nucleus Office Parks, the operating platform for fully-owned Blackstone offices in India, it added. The centre is spread across 27,000 square feet with 450 seats and is located at One International Center, Lower Parel.

Awfis Founder & CEO Amit Ramani said, “Given the rising demand of co-working spaces, Awfis Gold will emerge as the premium partner of choice for enterprises and CXOs who are now looking towards a hybrid model of working.” Currently, Awfis has 10 Gold centres spread across 3.5 lakh square feet in Mumbai, Bengaluru, Hyderabad and Chennai. Awfis has 131 centres and 77,500 seats across 14 cities. It plans to expand to 200 centres by the end of 2022.

The demand for managed office spaces in co-working centres has improved in the last one year as corporates want flexibility. Recently, real estate consultant CBRE came out with a survey suggesting that nearly 75 percent of office space occupiers are evaluating hybrid working models as their real estate strategy. Around 78 percent of the occupiers surveyed have underlined employee health and wellbeing as the most important element while facilitating return to office.

Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE said, “Return to Office for several corporates in India is already underway, with varying occupancies currently observed across cities as well as sectors.” With the widespread adoption of hybrid working since the pandemic, he said many companies are still considering the degree of flexibility needed to enhance employee productivity and connectivity.

Property consultant Colliers and co-working marketplace Qdesq, in a joint report, said that flex workspace stock would rise to 60.8 million square feet in metro and non-metro cities by 2023 from 43.8 million square feet at the end of the September 2021. There are more than 3,000 co-working centres across major cities.

In India, the major co-working, including managed office space, operators are WeWork, Awfis, Smartworks, The Executive Centre, Simpliwork Offices, 91Springboard, Skootr Global and The Office Pass, among others.

This story appeared in the 12 July, 2022 issue of Money Control and was originally published  at: Co-working firm Awfis ties up with Nucleus Office Parks to set up 450-desk centre in Mumbai, Money Control