Simpliwork Offices looks to double up its space in NCR – ET RealEstate

Flexible office space operator Simpliwork Offices is looking to double up its space in NCR in a year, taking the total investment in the region to Rs 400-500 crore.

The company has already signed two spaces in NCR and is in the final stages of signing leases for another two centres, bringing its portfolio to 800,000 sq ft in NCR.

As part of its national expansion plan, the company is also adding more centres in Bengaluru, Hyderabad and Pune.

“While Covid-19 has certainly impacted the demand, this is also the best time to freeze space. We are bullish and expanding in NCR as there is no issue of demand and supply,” said Kunal Walia, founder and CEO of Simpliwork.

There are over 250 co-working players operational in India and the segment is dominated by top 10 players, who occupy 75-80% of the market share in the top eight cities.

Simpliwork Offices recently inked a long-term lease for 230,000 sq ft office space in Pune.

This transaction is the largest Pune office lease signed till date in 2020.

In two lease deals with DLF, the company has taken 55,000 sq ft at DLF Plaza in Gurgaon and 45,000 sq ft at DLF’s Prime Tower in Delhi.

“We have taken new space in both Pune and Hyderabad in the last couple of weeks. We are in final stages of discussions in taking 75,000 sq ft in Golf Course Road, Gurgaon, 1.1 lakh sq ft in DLF’sCyber Park, Gurgaon and another property at Golf Course Road Extension,” said Walia.

Property consultant Knight Frank has estimated that due to the Covid-19 crisis, around 3.2 million sq ft (MSF) of flexible space is expected to be vacated by operators in 2020.

But many players are seeing it as an opportunity to acquire space at the right price and expand their footprint.

“Enquiries have gone up significantly and we consider NCR as big a market as Hyderabad where we operate a million sq ft,” Walia said.

Approximately 25% — 6.4 million sq ft (msf) of the total 25.45 msf — of the co-working space in the top eight cities is operated by smaller players with Bengaluru and NCR housing the most companies.

Started in January 2018, Simpliwork currently manages over 2.4 million sq ft in India.

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