Shared Office Space Promises To Rule The Future Of Commercial Real Estate Market
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
The new economy that relies on sharing is changing how business has been operating since decades and the commercial real estate market is no different.
Considering the benefits like cost saving and accessibility of infrastructure, all along with the ease of networking with people beyond own company has only given a rise in the structure of shared office spaces in today’s commercial real estate market.
Today, one can find that a number of companies, both of same and different industries are being clubbed in together in the same building in every industrial setup. It is very frequent for the companies especially dealing in IT industries to go for shared office space.
It is not just the prime commercial hubs like Bangalore and Hyderabad that are witnessing the rise in shared office spaces even the demand of commercial office space in Kolkata and other similar belt cities like Orissa and Pune are also seeing a rise in the demand of co-sharing spaces.
While the Indian commercial sector has been supporting shared office space completely, let us look at the global trends:
The rise in demand of co-sharing office spaces has been on a rise even globally. Real estate researchers and analysts believe that co-sharing is the future of commercial market, ready to change how one once searched for commercial complex when starting or extending their business.
The data that shows the growth of this trend is very impressive. In June 2015, New York’s leader in co-working space and the city’s biggest real estate tenant, WeWork, received a $10 Billion valuation. After following the trend shown by a recent survey that from more than 200 major commercial real estate companies around 40 per cent are willing to enter the
The data that shows the growth of this trend is very impressive. In June 2015, New York’s leader in co-working space and the city’s biggest real estate tenant, WeWork, received a $10 Billion valuation. After following the trend shown by a recent survey that from more than 200 major commercial real estate companies around 40 per cent are willing to enter the co-sharing office space market, a number of companies have been emerging as the service providers for this segment of investors.
The latest company to have entered this segment in India is Awfis Space Solutions, the company that offers co-working space to companies on call.
According to the CEO of Kinglet, the demand of co-working spaces has doubled approximately every year for the last five years. It is also analysed by Small Business Labs project that around 12,000 and more global co-working space will be functional by the year 2018 with more than 1 million members.
It has been seen that a number of reasons have been backing this growing demand for co-sharing office spaces from the prime one being that technology has helped companies in becoming more flexible and paperless. Along with that the downfall of real estate industry has also motivated the industry players to move in with others in the market.
Lastly, the announcement of millennial generation dominating the job market has made companies rethink their operation around the sole factor that drives millennial globally, networking.
Beyond the realm of brick and mortar, co-sharing office spaces offer a space to meet other professionals and expand the professional network while bringing in the sense of community.
Seeing the changing trend in both,real estate market and the corporate culture, shared office space is the easiest and most convenient form of doing business with the promise to rule the future of commercial real estate market.