Corporates find office rents unaffordable amidst the pandemic, turn to coworking spaces
Mumbai: Coworking spaces are seeing a steady growth rate in 2020 and are set to expand by 21.3 percentage in 2021, according to Coworking Resources. Corporates turn to these spaces amidst the pandemic. One of the major reasons they cite is unaffordable rent for personal office spaces.
Rohan Parmar, Admin at FlexiLoans says, “It’s difficult to manage such a huge office during the lockdown. For a period of eight months, you have to pay rent and landlords can’t bear the entire loss, either.” FlexiLoans had a rented personal office space in Matunga but it had to be vacated. The virus not only affected them financially but also resulted in a decrease in employees. A personal space didn’t seem wise, and they moved to a coworking space.
However, recently, coworking spaces have seen an increase in client queries and look forward to a lot more corporates, and start-up companies, seeking seats. Priyanka Dangi, Community Head at 603 The Coworking Space, says, “Queries have started coming in. People are now tired of working from home. They want to change and convert to a working environment. It increases their productivity levels.” People have safety concerns but the coworking spaces claim to keep everything in check on a regular basis.
The increase in clientele is now pushing coworking spaces to explore newer business models. The idea of a “Managed office” comes into picture. They now offer services of managing spaces for companies who would otherwise outsource the work. It works as an all-under-one-roof scheme which is beneficial to both the parties involved.
However, real estate consultants say this is the best time to invest in a commercial space. The deal one gets right now will fare well when the pandemic ends and an office space is needed to work out of. Sunil Shah, real estate consultant, says, “Right now, commercial spaces are on a very low scale. It’s the right time to invest. It’s better to buy the property now, do not wait. Buy and hold.”
The pandemic has not only affected financial statuses of corporates but it has changed the definition of an office space altogether. Employers and employees require a certain environment to work out of. Coworking spaces seem to be fulfilling those needs with the benefits of affordable rents.