Co-working space or managed office space seem to be gathering momentum in Kochi with promoters are adding capacities in their existing facilities, considering the increasing occupancy rate.
Vistaara, promoted by the Kochi based Sreeniketana Group, has completed its second phase by adding an additional 12,000 sq ft, by taking the total space to 17,000 sq ft in less than two years. The first phase of the project was completed in January 2019 with 100 per cent occupancy, said S.Giridhar, Managing Director.
The company plans to establish two more projects in other locations in the next one year to meet the requirements of the clientèle. He attributed the reasons for the rising demand for co-opting space following reducing cost especially in the SMB segment in a subdued business environment. The availability of such spaces would be ideal for startups to minimise their cost of operations in the initial years.
Likewise, retired hands who has got vast experience in HR services, consultancy, stock broking can look forward to offering their services by utilising a space in the available facilities, he said.
Asked whether the new 'Work from Home' concept would have an impact on the functioning of co-working space providers, Giridhar said “WFH is a temporary phenomenon, and it will not sustain in the long run. May be IT firms can be benefited out of it considering the reduced space for their operations and cost involved, while other sectors would have an impact on their productivity, going forward”.
Sanjay Chatrath, Business Partner, Incuspaze said his company has launched another centre in Kakkanad, a suburban area in Kochi with over 500 seating capacity with high-end facilities and infrastructure. The company's first such facility in the city at Oberon Mall is running at 100 per cent capacity.
Prior to this, the company has already marked its presence in other southern locations such as Thiruvananthapuram, along with enterprise-grade assets in Mysore, Visakhapatnam, and Vijayawada.
Propelled by factors like the decentralization of corporate offices and the increase in the demand for satellite offices by MNCs, this spoke, and hub model is here to stay; managed offices have been also opted by the workforce looking for a suitable workspace near their homes, he said.
The outbreak of Covid-19 has forced companies to demand more flexible options in CRE, with less Capex, and in such situation managed offices can really help corporates to save money liabilities, foster workspace growth, he added.