Coworking companies rent 21% more office space in 2021 in top 8 cities
According to Cushman & Wakefield, coworking operators aggressively expanded their portfolios last year and leased 21% more office space in the top 8 cities to meet growing corporate demand for flexible workspaces around the world. amid the COVID pandemic.
Rental of office space by coworking operators in eight major cities rose to 4.91 million square feet in 2021 from 4.05 million square feet the previous year.
These eight cities are – Bengaluru, Hyderabad, Pune, Mumbai, Delhi-NCR, Chennai, Kolkata and Ahmedabad.
In its quarterly Office Market Beat report, Cushman and Wakefield India pointed out that the share of the coworking segment in gross office rental increased to 9.4% last year from 8.1% the previous year.
In eight major cities, coworking players rented out 78,869 seats or offices in calendar year 2021 to occupants, mostly businesses.
In 2020, the report says 37,759 seats were leased to businesses in six cities.
In India, the major coworking operators including managed office spaces are WeWork, Smartworks, The Executive Centre, Simpliwork Offices, 91Springboard and The Office Pass among others.
Commenting on the trend, Badal Yagnik, Managing Director, Tenant Representation, Cushman and Wakefield India, said the pandemic has brought about a change in the way the office operates.
“With employees rapidly transitioning to a hybrid model, enterprise demand for managed workspaces is steadily increasing, with shorter lease terms and lower capital expenditures driving rental momentum,” he said. -he declares.
Yagnik expects the flexible workspace industry in India to maintain its solid expansion even this year after ending 2021 on a high note.
According to the report, cities such as Bengaluru, Delhi-NCR and Pune were the top contributors to flexible seating usage in the December quarter.
The consultant noted that companies are increasingly exploring flexible office space as it has the advantages of shorter occupancy times, low capital investments and managed facilities, among others.
Amid the COVID pandemic, the demand for flexible seating has risen sharply.
This explains the significant increase in office space rented by flexible workspace operators in the fourth quarter of 2021, according to the report.
Overall, the consultant said total gross rental of office space in eight major cities was 52.6 million square feet, while net rental of office space was 21 million. square feet over the past year.
The new office supply amounted to 38 million square feet.
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