Owing to rising demand co-working space leasing to double up

Photo Credit: Design Helm, Los Angeles

By Accommodation Times Bureau

Leasing of office space by co- working operators may double in 2017 to 1.5 million sq ft with the concept of shared office space gaining momentum in the country, according to property consultant CBRE India.

CBRE South Asia in its report ‘The Art of Co-Working’ has projected that leasing could touch 10 million sq ft by 2020.

“While demand more than tripled in 2016 to touch 0.7 million sq ft as compared to 2014, this year (2017), leasing is expected to cross 1.5 million sq ft. With the concept of shared office space fast catching up in India, leasing is expected to touch 10 mn sq ft by 2020,” CBRE said.

The report highlighted that shared office spaces fall into 3 categories – traditional business centres, co-working spaces and incubators/accelerators.

There are close to 350 shared office operators present in India, spread across 800 locations in tier 1 and tier 2 cities. However, 85 per cent of shared office space in India is in tier 1 cities and the rest 15 per cent in tier 2 cities.

“With Bengaluru, NCR (Delhi, Gurgaon and Noida) and Mumbai being gateway cities, 75 per cent of the shared office spaces are based in these three locations. Each has more than 100 shared office spaces followed by Hyderabad, Chennai and Pune,” the consultant said in a statement.

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