As more and more companies flock the Indian corporate ecosystem, the need for office spaces is also growing at an unprecedented rate. Startups, corporates, consultants, individuals and every other person wanting to set up an office wants an office space, whether it be rental or proprietary. However, the proliferation of the corporate culture in the Indian ecosystem and the growing industries has made the availability of office spaces very difficult and the rental and buying prices very high. It is often very difficult for new companies or small startups to rent offices made by real estate developers in prime locations due to the very high rentals being charged, sometimes even more than the value of the whole company. This has led to the development and imbibing of the western concept of shared office spaces or co-working spaces in the Indian corporate ecosystem made by builders in India.
Co-working spaces is a concept that involves the sharing of an office space by two or more companies and hence it means a common environment and culture for the involved companies. The co-working market in India is growing steadily and already around 0.73 million sq. ft. was absorbed in the last year for the development and functioning of shared working spaces. The analysts and real estate developers in India believe that this concept of shared market spaces is going to be the next market disruptor with very huge potential due to the variety of benefits it has to offer for the companies involved.
Lower Operating Costs
Renting or buying of office space made by real estate developers in one of the prime locations is an arduous task and requires a lot of capital and infrastructure which not every company can afford profitably. New age startups, individual clinics, small sized companies and growing companies often do not have that much capital to invest in renting spaces as they have to focus on other important things like manpower and revenue generation. This makes the prospect of shared office spaces all the more lucrative and attractive for such companies. By working in a shared environment, the companies can lower the rental costs and still work profitably and focus on their core businesses. Several startups and other small sized companies can work together in such places and lower the rent that each has to pay as compared to operating singly in big spaces made by builders in India.
More Creativity Due To Peer Interactions
An important aspect of creativity and innovation is development through peers and free flow of ideas. Housing of many companies and startups under the same roof having similar work environment fosters various challenging and demanding situations among the people and motivates them to work harder than their peers. Also, the continuous interactions between the employees allows free thinking, exchange of ideas and the splurge of innovation.
Ease Of Movement Among People
In shared spaces, it is easy for people to learn more about various companies and share their experiences. This makes it easier for companies to attract as well as retain talent as the people are generally poised to do well and succeed in such an environment.