Revolution in Office Dynamics: The Co-Working Office Space

The Indian digital age businesses are witnessing a revolutionary trend in dynamics of office space-co working offices. They are driven by the need to attract the millennial workforce as well as strategies for cost optimization.

For a long time, the commercial real estate market in India was restricted to large office set-ups featuring long lock-in periods and high fixed costs. The millennial workforce and the rising entrepreneurial culture are sparking off demand for ‘small’ and ‘flexible’ alternatives in real estate making the best real estate companies to step in this game changing co-working office scenario.

India’s growth story is being spurred on by SMEs and Start-ups that are scaling the workforce like never before. The challenge before such companies is to find office space that is flexible, affordable, and suit their specific requirements like a good location.

Business owners are now considering the idea of co-working or collective working. This not only helps them share physical office space but also in sharing ideas and networking. In essence, co-working provides innovative space solutions without having to make huge investments in large properties anticipating future growth of employees.

In case of big businesses, the challenges are different. Increased travel time, long distances, and urban congestion, as well as pressure to lower operational and capital expense, are some challenges. Another challenge is the growth of remote or telecommuting workers.

But working from home or cafes has its own drawbacks. Limited access to facilities like printing and internet and lack of control over the background or surroundings mar the work of remote workers. Such companies are rethinking their best practices because of low productivity and lack of proper control over employees. This has spurred companies to consider co-working office spaces.

 A co-working space is typically an open-floor format office with shared space for collaboration, networking, and meetings. The trend is leading to the creation of functional, well-designed, and beautiful office spaces, which encourage collaboration and forge a sense of community.

The millennial workforce and a stagnant economy are triggering workplace reform all over the world since the norm in the workspace will be ‘cool offices.’ Low growth of GDP, low rates of capitalization, low growth in rentals and reduced interest rates are the global trends that are making co-working (shared spaces) more and more popular.

To hire best talent, particularly millennial, companies need to have attractive workplaces that appeal to the employees. As per reports, around 10% of millennials are willing to take a pay cut for an office with a good design and in a good location. For instance, the companies which are planning for canteens, coffee bars, game rooms, fitness centres, day-care centres and bike racks have rightly adopted the ‘coolness quotient.’

Co-working spaces bridge the gap between demand and supply of fully equipped office spaces, which provide employees with all vital amenities like scanners, printers, high speed internet, multiple seating arrangements, meeting rooms, complimentary beverages and food, mail handling facility and parking space.

Currently, 17% of A-grade office space in India is lying vacant with figures touching 20% in Mumbai and 27% in Delhi. Co-working is a great business opportunity, which can monetize commercial spaces, which remain under-utilized. Using planned operations and timely execution of projects, co-working firms help deliver top solutions for real estate companies and owners that use the spaces.