Changing dynamics of corporate real estate: The rise of coworking spaces

Abstract

The past three years have seen a dramatic increase in coworking spaces across Asia, including India. The concept of coworking was triggered in the West by the global financial crisis of 2007–08, while Asia has just begun to embrace the change. There is an excessive focus on creating more efficient and cost-effective solutions for start-ups, small and medium enterprises (SMEs) and corporates. These flexible, technology-smart, state-of-the-art facilities attract millennial occupiers who like to work together in a vibrant environment. This paper explores the evolution of coworking space in India and discusses its impact on corporate real estate strategies in the present age of digital disruption, as the concept is likely to progress towards becoming a subset of the commercial real estate industry in the coming years. From the advent of the idea among start-ups and freelancers, these workspaces are attracting the attention of larger organisations as well. As operators and developers experiment with various business models for best efficiency and cost optimisation, the coworking era is likely to be an interesting period.