Inspire Co-Spaces leases 20,000 sq ft in Ahmedabad to open co-working centre – ET RealEstate

Flexible office space provider Inspire Co-Spaces has entered into an agreement to lease 20,000 sq ft space in commercial real estate project Westgate on Ahmedabad‘s SG highway to start a coworking centre.

The proposed hub will be a 300-seater co-working hub in addition to Inspire Co-Spaces’ existing four centers in Mumbai with over 5,000 seats. The company plans to double the seats by 2022 in different cities in India.

“We plan to invest over five crores to build the first flagship center in Ahmedabad city. We further have plans to expand to tier 2 cities like Kochi, Indore, Lucknow, etc., in the next 3 to 6 months’ timeframe. We see good traction in the workspace and are excited to see the rapid economic advancement in the coming years,” said Nisshith Agarrwal, Founder and Director of Inspire Co-Spaces.

The co-working company has earlier received an investment of $4 million from an angel investor, Ashish Chandna, which they are using strategically to expand their footprint in all tier 1 and tier 2 cities.

“Ahmedabad is in the top 10 industrial corridors for co-working spaces. Underlining the potential in Ahmedabad, post-Covid many companies, organizations, and entrepreneurs prefer co-working spaces; hence we are confident that this launch will meet the demand for co-working space. Before going live, more than 50% of seats have been occupied. This workspace is designed to maintain recommended safety and hygiene standards to enable a healthy and safe work environment,” said Amit Sathe, Director, and Founder of Inspire Co-Spaces.

This first center in Ahmedabad will be operational by mid-June. Post-Covid, many SMEs, corporates, and entrepreneurs are looking for hybrid workspace arrangements with less risk and minimum investment.

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Office space provider Workspace sees occupancy level returning this fiscal year – ET RealEstate

BENGALURU: Office space provider Workspace Group said on Thursday it expects a recovery in occupancy levels in the current financial year as coronavirus-related restrictions ease in the UK and financial capital London opens up for business.

Office space providers are gradually recovering after work-from-home policies and the economic fallout from the pandemic hurt their margins as costs surge and customers default on rent payments.

Workspace, which owns and manages 4 million square feet of business space in London, said occupancy at its centres was at 20% of pre-pandemic levels by end-March and 30% by end-April.

“Despite the government lockdown, new customer demand picked up strongly through the fourth quarter, with average monthly enquiries of 910 and average monthly lettings of 111,” the company said in a business update.

Workspace said cash collection has continued to be robust, with the company receiving 92% of rent due for the fourth quarter of fiscal 2021 and 84% for the first quarter of the current financial year.

Shares of the FTSE Midcap component rose more than 2% in early trade.

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Co-working spaces flourish in Kochi during pandemic – ET RealEstate

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KOCHI: Though the office space market is hit hugely by the Covid pandemic, the coworking space providers are finding an increased demand for small spaces from corporates, who are scaling down their operations either temporarily or permanently in Kochi.

“We are getting nearly 25 inquiries every month from the corporates who want to move to our business centre. Corporates are finding it as an attractive solution to bring down their overheads. Also, if the economy is sluggish, they could move out of a business centre, without any liabilities,” said Monlash Business Centre chief executive Jackson Mathew. A British academic publishing house and the credit card division of one of the largest nationalized banks have decided to leave their own offices and move to Mathew’s business centre.

“This trend started just after the first wave of the pandemic, sometime in September,” said Centre A Offices director Joe Francis Alapatt, who introduced the concept of a premium business centre in Kochi. Since then, a French electrical giant and a German pressure-cleaner company moved to Alapatt’s business centre on MG Road.

A couple of the existing players have decided to scale up during the pandemic itself. During the third week of April, Incuspaze, a co-working space provider, added 500 seats at their Kakkanad facility, while Vistaara, a similar provider of managed office space, added 12,000 sq ft at their Cannon Shed Road facility.

Vistaara CEO P G Gopakumar said that two leading brands in the country — an airline and a credit-card company — moved to his facility, ditching their rented offices.

According to Mathew, the concept of business centre or coworking spaces is going to catch up further in Kochi market. “Now there are only five or six organized players in this segment and in the coming years, many might set up facilities here,” he said.

When asked whether the corporates are permanently scaling down their operations in Kochi, Incuspaze business partner Sanjay Chatrath said, “The corporates are not scaling down their operations; it is just that due to the pandemic the market has become a little vulnerable. This takes a toll on their businesses, due to which they turn towards coworking spaces to seek more flexible options. We all know the short-term commitments as well as the little investments needed in terms of commercial expenses in the coworking spaces. In such times, these factors make managed offices and coworking spaces a viable solution for several businesses. They provide easy scalability, offer flexible commitments, wider reach, and good facilities even in tier-2 cities”.

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WeWork India raises Rs 200 crore – ET RealEstate

NEW DELHI: WeWork India has raised Rs 200 crore from investors, through a mix of debt and equity, the company said in a media release.

Karan Virwani, CEO, WeWork India, said, “The new capital we have raised will help us in continuing our upwards momentum and truly explore the potential of flexible workspaces in the Indian market.”

The company claims to have leased 10,000 desks i.e. more than 7 lakh sq ft of area in Q1 2021. It’s enterprise portfolio has seen a 10% jump to now constitute 60% enterprise members. “Over the last year, WeWork has also seen a strong demand from enterprises, who are now looking at flexible workspaces as a viable long-term real estate option,” the company said in a media release.

In December, it had launched about 1.65 lakh sq ft flexible workspace in Embassy Manyata NXT building in Bengaluru. The location had capacity of over 3,500 desks.

It also leased out 1.5 lakh sq ft space to Microsoft in Noida and 15,700 sq ft of office space in Bengaluru to Khaitan & Co last year.

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