.jpg)
.jpg)
The work culture has undergone a profound change. One outcome of this is that shared space has replaced traditional self-contained offices. Shared space became the norm in many organisations over the last year. This has especially been seen in tier II and tier III cities. The trend has been driven by reverse migration and the fascination to live life in smaller and more peaceful cities and towns. Shared space offers many advantages. It offers a warm, friendly and professional working ambience without the responsibility of maintaining the premises. It can be tailor-made for a variety of businesses and can be designed according to the needs of the tenant.
In a survey conducted by property consultant Colliers, 63% of the firms surveyed were allowing their employees to work flexibly. This shows that shared workspaces continue to be the most viable option for today's workforce.
Tier II and III cities have readily welcomed the idea of shared offices. These are cities and towns with a population between 20,000 and 1,00,000 people. They are home to a large number of small and medium scale businesses and are critical to the future growth of the Indian economy. They have decent infrastructure; living conditions are favourable with low pollution levels and a moderate cost of living; and the work-life balance is good. Real estate prices are relatively low, and a comfortable, spacious home amidst soothing greenery, without the noise and bustle of the city, is very affordable even by young professionals.
It is more viable to conduct business from tier II and tier III cities. But office space is hard to come by; and maintaining the premises consumes a sizeable quantum of a company's profits. That is why astute providers of co-working space have begun to penetrate to these cities, where it is most needed. Clients are provided with sustainable work solutions that enable them to be fleet-footed and agile while fulfilling their business needs. Co-working offers them all these benefits while helping them grow their profit margin. They can avoid the formalities of setting up and furnishing their own office space. Supporting services like business grade Internet connectivity, round-the-clock IT support and on-demand conference facilities with the latest equipment are provided. Clients may also be allowed to display their own signage and promotional material.
The best co-working space providers understand their clients' needs and usually do not demand that a minimum amount of space or seats should be hired. This makes them attractive in smaller cities where even small businesses and start-ups with very few staff can project a respectable image. The move is similar to shifting into a fully furnished home, except that the new space is an office, not a home. They do not have to pay a heavy security deposit.
A new concept in shared space is the lite-managed office. These offices have been developed for businesses that need only a few seats and find it cumbersome to rent out an entire office space. The lite offices are well-appointed and offer professional services to clients with minimal requirements. Open office spaces are available that can accommodate a number of individual workers; but they compromise on privacy. Companies can even opt for spaces with workstations but without other expensive accessories.
With a comfortable office environment and attractive salary comes improved business confidence. This is what drove retail demand during the festive season in quarter 3 in 2022. Office and warehousing demand also remained robust. Occupancy levels shot up across all major markets. Office leasing stood at 13 million square feet across India in Q3 2022, a 26% increase from Q3 2021. The demand was steered by the availability of technology and good, flexible space providers. This demand is only likely to go upwards.
All these factors have given the co-working culture such a boost that the demand for space is skyrocketing. Experts believe that the demand will further escalate in 2023. The demand is not limited to small companies. Many large domestic and multinational companies are setting up office in tier II and III cities. They prefer to hire the best talent without relocating their employees. A lot of good staff are available locally, and companies can now offer them the opportunity to work from their home city without moving to the erstwhile business location. It helps the former pay salaries that are lower yet give employees ample buying power in their respective locations.
Space providers are now offering space in a variety of price ranges with offices that exude luxury, are fitted with world-class infrastructure and provided with tasteful décor; some spaces are designed to cater to limited budget groups. If you can find the right space provider, there are options for almost every taker. The concept can be applied to almost all categories of work. It is the work paradigm of the future.
