The Indian wing of New York-headquartered collaborative work-space major WeWork has acquired nearly 1.25 lakh sqft of office space on lease in Oberoi Realty’s commercial complex Commerz II in Goregaon suburb of Mumbai. This space is spread over four floors and WeWork will be paying rentals of Rs 130 per sqft per month, taking the total annual rentals to over Rs 19.50 cr. The total tenure of the lease is 10 years with a provision for 15% rental escalation every three years.
Sensing a big business opportunity in India, We-Work has already leased two buildings in Bengaluru and Mumbai with a total space of 3.3 lakh sqft. This includes a 1.9 lakh sqft standalone building owned by Enam Securities Group in Mumbai’s commercial business district Bandra Kurla Complex. Apart from this, early this week itself the company launched a 1.05 lakh sqft facility at Bristol Chowk in Gurugram. This was WeWork’s sixth facility in India after three locations in Bengaluru and two in Mumbai. With the launch of WeWork Bristol Chowk, the company will provide space for more than 7,000 members across India.
In one of the biggest front office transactions in 2017, consumer durable major Samsung Electronics India had leased 1.10 lakh sqft of office space in the same complex, while Teva Pharmaceutical Industries had leased 1.25 lakh sqft of office space here in September 2016.
Co-working, or collaborative offices, is a relatively novel concept in India. It gives an opportunity to individuals and start-ups from different fields to share a common workplace environment. The concept is steadily gathering pace across prime Indian property markets due to relatively cheaper costs and flexibility. According to several estimates, co-working spaces witnessed nearly a million sq ft absorption last year across India.
Several benefits, including flexible working options at affordable rents, networking opportunities and shared amenities are seen prompting startups and smaller outfits to operate out of co-working set-ups. Lots of investments are being made into co-working space and several startups are looking to expand their alliance with builders to increase their presence.