The New Incarnation of Co-working Space
The NCR reality sees co-working companies changing their business and operational strategies as vaccination gains traction and companies gradually return their employees to offices.
The argument over whether to work from home or return to the office continues. While work from home, or WFH as it is now known, was once thought to be an answer for workflow disruption, businesses are now acutely aware of the toll it has had on performance management, collaboration, the workplace culture and most crucially on the mental health. According to a recent poll conducted by real estate consultant firm CBRE, while the "purpose" of an office has evolved, the physical workplace's importance has not.
So far, the compromise has been a hybrid working paradigm, with some staff returning to their workplaces and the rest working from home. However, as the rate of immunization increases, businesses are preparing to reintroduce more of their staff into the physical workplace. However, it is possible that they will not return to their office. Co-working office space in Noida, on the other hand, is becoming increasingly appealing.
Flexibility is now at the heart of the new workplace model approach, which aims to strike a balance between employee satisfaction and corporate needs. And it's for this reason that, after a year of stagnation, Commercial Space In Noida offering co-working spaces are optimistic.
Co-working spaces in India have been expanding, with approximately 75,000 seats leased this year. According to CBRE, their flex stock, which is an industry term for co-working space, is currently at 36 million square feet, up from 31 million square feet last year, and is predicted to increase by 10-15% annually over the next three years.
Returning to business as normal, on the other hand, is not business as usual. The value proposition on offer has transcended rental pricing and other commercial factors in the framework of discussions between co-working companies and clients. "The conversations are more focused on guaranteeing safety measures, privacy, data security, personal protection, and space density," says Harsh Gupta, Director, The Sundream Group.
Developers and property owners alike went back to the drawing board to rethink strategies and reorganize workspace as companies placed a greater emphasis on employee health and well-being than on productivity.
Co-working space operators are focusing on upgrades on both productivity and health protocols to ensure both employers and employees feel safe returning to their offices. From contact-less sanitary-ware to hospital-grade air purifiers, and from spacious desk spaces to big, high-resolution screens, the operators offering co-working spaces are focusing on both health protocols and productivity upgrades to ensure employers and employees feel safe returning to their offices. For the time being, operators are satisfied to foot the tab as long as demand is generated.
All is driven by demand.
Rental rates were impacted the most by the Covid-19 epidemic, but a slow recovery has brought them back to near per-pandemic levels, while sales have actually increased. Co-working companies, on the other hand, have adjusted their approach as they grow. Because organizations are currently functioning with short-term visibility on headcount predictions and business development, flexibility is critical, especially given the threat of a third wave. Even if they recruit, companies aren't sure if staff would be needed to work from the office or they will be fine performing from home. All of this means that businesses prefer their workers to return to a physical workspace, even if it is a co-working space.
IT and ITES organizations have been at the forefront of co-working space use, followed by start-ups. It's no surprise, given that several of these IT companies have declared aggressive hiring goals and are willing to go above and beyond to acquire the best personnel, regardless of location.
According to The Sundream Group, the developers of Anthurium Noida, more large businesses have migrated to flexible workspace and signed long-term agreements in the last year.
Furthermore, the geographic reach of co-working spaces is expanding. Noida would top the list of the highest flex stock in the country this year. In places like Chennai and Pune, the flex category is anticipated to grow even more in the coming years.
Adoption of social distancing procedures in common places such as lobbies and elevators are the most basic adjustment at every co-working space. For the time being, certain businesses have even closed their food and beverage outlets for safety reasons. Housekeeping, hygiene, and cleanliness are the most significant additional recurring costs for operators. Clients, on the other hand, are willing to pay extra because hygiene and safety are not negotiable.
While larger or more spaced-out desks may reduce the total number of seats available, operators are willing to comply since, they are not at maximum capacity and have room to spare. As a result, they are willing to make such changes till occupancy increases, as long as clients are willing to pay more rents for private or roomier layouts. Furthermore, these are simple nuts-and-bolts changes that may be reversed with ease whenever necessary.
And, for the most part, co-working companies are willing to absorb the additional costs of such safety and sanitary precautions in order to attract clients. They hope to pass on some of these expenses to their clients once the demand and supply imbalance is resolved. Large-scale interest, according to experts, might interpose the rise in demand in the short and medium term.
As the corporate juggernaut returns to normalcy, co-working spaces Noida could emerge as an unexpected winner in the battle over whether to work from home or return to the office.