New York-based shared workspace provider WeWork’s India arm has taken up nearly 1.7 lakh sq ft of office space on lease in two separate transactions in Mumbai’s Andheri and Vikhroli suburb. Nearly 1 lakh sqft of office space the company has leased in Blackstone Group’s commercial complex 247 Park in Mumbai’s eastern suburb Vikhroli. The remaining 70,000 sqft the company has taken up in an office building in the western suburb of Andheri.
Already, WeWork had earlier this year leased 3.3 lakh sqft of office space in two separate deals in Mumbai and Bengaluru. For its first flagship co-working space, WeWork India had leased the 1.4-lakh sqft building Embassy Galaxy on Residency Road in Bengaluru. It also leased Enam building, a 1.9-lakh sqft standalone property owned by Enam Securities Group in Mumbai’s commercial business district Bandra Kurla Complex.
WeWork will be paying monthly rent of Rs 92 per sqft for space in 247 Park and at Rs 100 per sqft for for the Andheri office space. Both the lease agreements are for 20 years with a clause of resetting rentals every three years.
Presently, WeWork India has total three 3 operational centres in the country including two in Bengaluru and one in BKC, Mumbai, with cumulative capacity of 6,000 desks as of now across these operational centres.
“We are continuously opening centres across the country and hence this will only continue to grow. We definitely see a lot of potential in each city, as we continue to open more centres in Bengaluru and Mumbai. We are also scheduled to open in Delhi early next year,” Karan Virwani, director, WeWork India said.
Co-working or collaborative offices, a relatively new concept in India, involves various individuals, or start-ups, sharing a common workplace environment. The concept is fast gaining ground across prime Indian property markets due to relatively cheaper costs and flexibility. According to reports, co-working spaces witnessed nearly a million sqft absorption last year across India.
Benefits like flexible working options at affordable rents, networking opportunities and shared amenities are the factors attracting startups and smaller outfits to operate out of co-working set-ups. Lots of investments are being made into co-working space and several start-ups are looking to expand their alliance with builders to increase their presence.