Rise Of Hybrid Co-Working

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Sample this. 

Earlier, when a company was scouting for a co-working space, the options were cookie-cutter workstations, with 50-60 sq. ft. of average space per desk. 

But since the virus thing happened, the same company is exploring hybrid spaces across regions because today it requires co-working operators in desired locations to customise the workplace as per its needs. 

It is no longer about where employees are working, but about how they are working, writes Ramesh Nair of Colliers. 

The Backstory

Between 2017-19, co-working expanded strongly and total space grew by 2.3X in 2019, compared to 2017. 

Co-working's share of space in the total leasing volume also increased from 6% in 2017 to 20% in 2019, a growth of over 3X. 

However, the infamous waves 1 and 2 battered the segment and across top operators, the average occupancy level dwindled down to 65% during 2020 as co-working space occupiers closed unprofitable centers, and postponed or even cancelled many new leases. 

Present Day

With the hybrid model of work taking centre stage, corporates are aiming to decentralise teams and promote work from near home. Co-working spaces are designed to fill this gap and provide convenience to employees while also offering a collaborative workspace. 

Going by future demand forecasts by experts, most landlords should have a co-working share in their portfolio in the next few years.

The Way Ahead

Occupier experience and safety are now paramount and will control customer retention in this highly competitive segment. 

Plug-and-play digital infrastructure and smart facilities will increase operational efficiency and overall asset value of co-working spaces, and so will facilities related to health and wellness.

Also, while initially the growth of co-working spaces was limited to the top 6 Indian cities, operators have started expanding into tier-II cities now, due to increasing demand.