This 2018, flexible & coworking spaces have thrived to be at the forefront of commercial real estate discussions. By the end of this year, 3% of complete office stock comprises of flexible workspaces, it is estimated to grow upto 11% in next 2 years.
Predictions & Trends:
- Adoption – This whole movement & adoption was initiated by SME’s & Startups from 2016 till early 2018. 2018 was a landmark turning point for flex ecosystem. More and more large corporates & enterprises opting for coworking spaces or serviced office for flexible requirement on pan India basis.
- Managed Office – This is an emerging asset class within flex ecosystem. This basically means giving a customized Private serviced and managed office as per client specs – culture, design, terms and price objectives. Again with a strong wrap of flexible terms. The major seekers of this solution or rather client segment is of large corporates. The corporates get the desired office which is managed by specialist in the business at no capex 2019 would witness more of these closure in the market. Home grown managed office operators are offering really valued solution here.
- The New Landlord – Coworking operators are the new landlords offering zero capex, serviced & managed office solution on flexible term. The layer between building owners/developers and the end occupier.
- 2019 – New Supply entrants – Something striking will emerge towards the late 2019 and early 2020, established large landlords would apportion 3% – 5% of the building for flex space either self operated or coworking partner operated.
- Consolidation – Yes or No? Not really. In bits & pieces, may be or here & there. Definitely not a phenomenon or the obvious progression.
Why X should buy Y?
Is there something proprietary here?
- Occupants profile & Loyalty
- Real estate acquisition cost/strategy
- Design & Configuration
- Community & Collaboration
- Faster Roll out & Scale