Flexible and coworking offices are in high demand as larger companies are looking to scale up and use these spaces to their advantage.
Smartworks, a software solutions company, founder Neetish Sarda says that the coworking space market has doubled the past year and will continue upwards into 2019. It is the fastest growing sector of commercial office space.
The CBRE reported that flexible office firms have reached a total footprint of about 40 million square feet throughout Asia and as of June of this year, China and India are two of the largest markets for spaces in Asia Pacific.
Despite coworking spaces beginning as a hub for entrepreneurs and startups, large corporations, such as Amazon and Microsoft, are seeking to increase flexibility. Sarda says agile workspaces appeal to businesses due to their technology-driven and cost efficient manner. “Corporations can save around 25-40% compared to leased properties,” according to Sarda.
Gig economy may contribute to this growth as it allows workers to work temporary positions and is typically technology-heavy. Despite this, enterprises becoming a big portion of the coworking space audience is more likely due to their naturally massive presence, often times renting out an entire floor in some offices.
Smartworks has scaled up to over 1.5 million square feet across nine cities, with 80% of their clients consisting of large corporations such as Microsoft, Arcelor Mittal, Amazon, Carrier, Otis, Daikin, Lenovo, Bacardi, DHL, and more.
They provide leisure networking events, like meditation, chair yoga, and pet therapy, to encourage companies to collaborate.
Sarda says he sees a demand for offices in smaller areas too and has plans to open a facility in Chennai next year. He hopes to reach 10 million square feet in India by 2022.