The Next Generation of Workspaces…What Works & What Doesn't in Favour of Coworking
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ENTERPRISE FEATURE 94 Share the floor 95 THE NEXT GENERATION OF WORKSPACES IS AS HIP AS THEY COME. WE DIVE INTO WHAT WORKS AND WHAT DOESN’T IN FAVOUR OF COWORKING Hari Menon In many places, the ‘chai waale address. The logistics are a pain, offices just as you share taxis, bhaiyya’ has been replaced with a the interior needs work, there’s no scooters or self-drive cars. And for #200,000 machine for espresso on parking, and of course, there’s the any company, start-up or free- demand. How about a chilled beer extortionate security deposit. If you lancer who doesn’t want to invest instead? Or a 10-minute power are a businessman on an expansion millions in just setting up an of- ind back to childhood when the days were simpler. These workspaces have under- nap in one of the dedicated pods spree, or an entrepreneur graduat- fice, there’s good news. Finding You and your pack wore uniforms for much of the gone a sea of change and offices for you to relax? These hip new of- ing from your ‘work-from-home’ coworking spaces in metros now is day, you fought to watch extra 15 minutes of TV, have only gotten swankier with fices are blurring the lines between stage, good luck. At least, that was like finding potholes in Mumbai; and dad (and, for many, mum too) took off to this each decade. Fingerprint scans at work and play. the case until recently. throw a stone and you’re likely to mystical place every morning, without fail. When somebody asked where entry, smart-ID cards, automated Fads come and go, but the pain of hit one. The idea behind coworking Wyour parents were, pat came the response “office”, but all you knew about multilevel car parking and build- setting up a new office remains. For spaces is simple. You pay per seat FANCY THAT the ‘office’ was what you saw on TV — white walls, cubicles and a drab- ings covered in tempered, tinted one, you have budgetary constraints Call it a miracle of shared econo- and forget electricity bills, furni- looking space where adults did ‘big people’ things. glass are all too common today. while hunting for a new official my, but today, you can share your ture, pantry maintenance, security 13 September 2019 / / 13 September 2019 ENTERPRISE FEATURE personnel or even internet connec- ing number of start-ups and the There is savings in human-re- neurs from the CoWrks Foundry tivity. And guess what? No lengthy move by traditional occupiers to source engagement too for cli- programme, who can become lock-in periods either. flexible space options is sustain- ent companies, because the space part of the Yale family,” says Sten You get to choose among the type ing growth.” He makes a pertinent providers organise community- Vermund, dean, Yale School of of seats as well. For instance, We- point. India is positioned as the building and networking events. Public Health. The institution is Work, the most popular player in third largest start-up hub in the For example, there are post-work researching ways to improve the the coworking space, classifies its world today. By 2020, the coun- hours workshops on anything from quality of life for people and has offerings into — hot desks, dedicat- try is expected to be home to over digital marketing to accounting brought six companies into its in- ed desks and private offices. With The coworking sector’s Rising number of start- 10,000 tech start-ups employing — be it face-to-face interactions cubator programme with CoWrks. hot desks, you pick any vacant growth has been strong at ups and traditional occupiers nearly 200,000 people. with investors or good old festi- He adds, “What we look for in seat in the facility’s community 30-40% in the past, and will moving to flexible space Smaller players are increasingly val celebrations. Harvard Business ventures is whether they pass four area and get cracking; dedicated be at - % in future options is sustaining growth moving into such spaces for their Review speculates that coworking criteria: feasibility, sustainability, desks get you a fixed, furnished 15 20 higher flexibility, ease in setting up offices have a positive impact on market fit and impact on society.” work-spot; and private offices are —ANUJ PURI —AVISHEK BANERJEE without administrative hindrances, employees by giving them a sense There is much that is being done reserved spaces for companies with Chairman, ANAROCK Group Advisory partner, real estate, EY India and freedom from long-term com- of meaning at work. in the coworking space and Baner- five to 100 members. mitment to real estate. Puri says Companies such as WeWork and jee predicts that it will see more Since these spaces are flex- according to the office’s location — Easily the biggest name in the do- that, on lease, coworking spaces CoWrks even actively promote players in time, and an eventual ible with 24x7 access, they have from prime to suburban locales. main, the company has expanded are 15-20% cheaper than stand- start-ups, almost in an incubator- consolidation. In fact, this trend become a hit among start-ups From a purely functional as- to over 35 countries within seven alone offices. like manner. WeWork Labs, the has already started kicking in. and small ventures. According to pect, there’s not much that sepa- years of its inception and has Powered by technology, cowork- incubation wing for early-stage CoWrks very recently announced Awfis, 40% of it seats are booked rates one space from the other if nearly 800 properties across 124 ing spaces lend themselves to bet- start-ups made news for helping its acquisition of The UnCube, a by enterprises, 40% by SMEs and all one needs is a desk. In fact, cities. Its India venture has made ter use of real estate. Banerjee 11 start-ups raise a cumulative company that provides on-demand 20% by freelancers and start-ups. the internal joke among cowork- investors and market experts sit explains, “Technology helps track $5.5 million. CoWrks is collabo- workspace solutions. Under the new Besides specifying the number of ing space users is that when the up and take notice of the poten- usage pattern, sweet-spots for siz- rating with Ivy League institutes brand, CoWrks plans to expand to seats and paying the fee, custom- business does well, one shifts tial in this space. According to ing of workstations and meeting such as Columbia (for urban-tech over 20,000 locations and will offer ers only have to decide how swanky from a BHIVE or Awfis to We- Anuj Puri, chairman, ANAROCK rooms, ensuring efficient use of the start-ups) and Yale University flexible workspaces in restaurants 96 they want their office to be. Work. It goes the other way Group, “As of 2018-end, the total real-estate asset.” A company can (start-ups targeting healthcare) and hotels. The combined entity 97 For bragging rights, you need round during crunch time. supply of flexible workspaces was even subscribe to an app to moni- to rope in mentors for entrepre- will be renamed CoWrks Go. Mean- space in New York-based WeWork, anywhere between 7.1-7.5 million tor preferences and usage patterns neurs. “Our job is to help identify which has a rather pricey $47 bil- EXPLODING SPACE square feet area. It is expected of its employees. good ideas and potential entrepre- lion valuation and has already Some of the earliest cowork- to cross 10 million square feet by filed for an IPO hoping to raise ing spaces in India have been 2020.” (See: Floor plan) Floor plan $3.5 billion. A seat here typically around since 2012. For instance, The coworking sector has been Awfis manages the most number of properties and WeWork, the largest area costs #12,000-25,000 per month, New Delhi-based 91springboard, growing strong at 30-40% over the Net size of coworking space (square feet) No of seats across India Number of facilities and its facilities can very well put co-founded by Pranay Gupta in past few years and Puri believes the trend will continue, albeit on CoWrks The coworking industry garnered a high base. “The sector may see 2 million WeWork growth between 15-20% over the 25,000 3 million attention in India only in 2017, when US- next few years,” he says. 25 35,000 based WeWork made its way here It’s no surprise that metros ac- 23 counted for the lion’s share of five-star hotels to shame. Some of 2012, is among the most success- growth. Puri adds, “In H12019, of its spaces in the commercial dis- ful. It clocked revenue of #405.5 the total 28 million square feet of tricts of Bengaluru, Mumbai and million in FY18, though lagging office space absorption in top seven Gurugram offer gyms and the odd behind Awfis and IndiQube (both cities, almost five million square swimming pool. founded in ) that made # feet was for flexible workspaces 2015 619 91springboard # A little lower down the fancy million and 557.7 million, respec- and they were leased. Maximum 1.2 million + train, there are Awfis and CoWrks tively. Bengaluru’s BHIVE has been activity was recorded in Bengal- 25,000+ whose seats cost around #9,000- around since 2014, and clocked uru, followed by Hyderabad, Chen- 26 18,000, and have smaller proper- FY18 revenue of #56.5 million. nai, NCR and Mumbai.” ties than WeWork. Then there are However, the coworking industry But, which segment is the de- BHIVE Awfis names such as 91springboard and garnered attention in India only mand coming from? Avishek 0.2 million ~2 million BHIVE, which fall in the #7,000- in 2017, the year when WeWork Banerjee, advisory partner-real 2,500 30,000 12,000 bracket.