The co-working and managed office spaces sector is emerging as the fastest-growing asset class within the conventional office space sector across the metro and megacities in India. According to the latest Knight Frank report, this space has emerged stronger from the Covid-19 pandemic influence with a 17% share in transactions in H2 2021. The pandemic induced demand for flex spaces has helped the co-working sector gain a strong foothold in metro and megacities. In 2021, office space leasing by the co-working sector posted a 29% YoY growth over the year 2020. Large seat take-up has benefited the business model of co-working operators due to the continuation of a hybrid work model, a trend that is here to stay. Gathering momentum in every successive quarter of 2021, 84,000 seats were taken up in managed office premises in 2021.
Tapping the immense potential of the co-working space sector, 'The Address' has recently taken a giant leap that further strengthens its position in this rapidly growing business in India. 'The Address', one of the leading players in tier-1 & 2 focused, tech-enabled co-working and managed office spaces, has recently added 2,00,000 sq. ft. co-working spaces in four cities across the country. The company has added 1,10,000 sq. ft. space in Ahmedabad (two separate deals of 70,000 sq. ft. and 40,000 sq. ft.), 35,000 sq. ft. in Pune, 25,000 sq. ft. each in Surat and Indore with a total of 3,000 seats were taken up by these four cities.
The company to add 4,00,000 sq. ft. co-working space in seven major cities in India by this year
'The Address' is Gujarat's largest co-working and serviced office space provider with 2,00,000 sq. ft. (3,000 seats). The company also plans to add a further 2,00,000 sq. ft. space (3,000 seats) in Hyderabad, Nagpur, Kochi, and Coimbatore by the current year-end. With this expansion and proposed growth plans, the company will sit on a total of 6,00,000 sq. ft. co-working space with more than 8,000 seats across the country by the year 2022.
The company has added a 70,000 sq. ft. super built-up area in one of the properties developed by Sun Developers. This is the largest single deal in the co-working space business in Gujarat. The property is located at Ashram Road, a busy business street in the heart of Ahmedabad. The company will add 1,200 seats by January 2022 for Analytix Solutions.
Commenting on the deal and the plan, Mr. Yash Shah, Founder & CEO, The Address said "We are very happy to make this deal and it will strengthen our position in the market. Leaving the Covid-19 fear and impact, the markets have made a strong comeback and we are very bullish to expand our operation in near future. We have ambitious plans for the next three years and are eying to increase our footprints and client base with a great team and leadership hiring that has joined us. This deal will pull confidence for various companies to come and take advantage of managed offices space concept. I believe that by the end of 2025, 70% of buildings in Tier 1 and Tier 2 cities will be occupied by co-working players."
Mr. Rajiv P Bhatia, President & Country Head, Analytix Business Solutions (I) Pvt Ltd said "As we embark on this most exciting journey of continuous expansion and growth, we are delighted to be associated with the best partners to enable us in this journey—Sun Builders, The Address, and RRPL. Together with these associates, we hope to create a truly world-class, state-of-the-art delivery center that will provide cutting-edge outsourcing and transformational services to clients across the US and other parts of the world. Hopefully, this center will further strengthen the position of Gujarat as a premier provider of IT/ITES services with talent and facilities second to none."