Not Just an Office

Shared working spaces help firms cut corners on expenses as well as build sustainable networks.

- Varsha Meghani

Classified ads portal OLX has a four-member sales team operating out of Mumbai’s business district of Lower Parel. The company pays a rent of Rs 48,000 to Rs 50,000 per month for the work space, averaging about Rs 12,000 per person. For the premium piece of real estate that Lower Parel is, OLX would typically have had to pay anywhere between Rs 12,000 to Rs 18,000 per month for one workstation (of approximately 100 square feet) plus a security deposit equivalent to six to 12 months’ rent. The expenses would have further shot up in conventional leasing as landlords don’t offer floor plates less than 1,000 to 1,200 square feet, no matter how small the team. So, how has OLX gotten off this easy? Because it is merely one of the many companies that shares Awfis, a two-storied co-working space that allows offices to enjoy a top location, and a range of amenities without having to pay through their noses.

Welcome to the world of shared office spaces in which a co-working company takes lease of a larger space, re-designs it and then rents out smaller plates and single desks to ‘members’, as tenants are called. Says Ramesh Nair, CEO and country head for property consultancy Jones Lang LaSalle (JLL) in India, “Companies can save as much as 15 to 20 percent by working in a co-working space.”

But it’s not just the cost benefits that make co-working an attractive proposition. There’s the convenience factor, where members needn’t worry about fitting out the workplace, buying furniture or getting an internet connection, as they would under a traditional lease. Desk space can easily be reserved through an app, giving members all the perks of a top-class office facility, including Wi-Fi connectivity, conference rooms, storage units, informal lounges and pantry facilities, as well as not-so-traditional offerings like beer on tap, discounts on Microsoft Office products and even yoga classes.