Flexible Office Formats Will Sustain
The smaller co-working space operators are expected to find it very difficult to weather the COVID-19 storm; according to ‘Co-working: Surviving COVID-19’ report released by Knight Frank India, the global real estate consultancy.
Knight Frank India estimates that at least half of the stock amounting to 3.2 msf will be vacated by their operators within 2020 as these small operators fade away.
On the positive side, the uncertain economic environment will compel more companies to look for flexible options that can adapt to and fulfil their changing requirements, without capital expenses and shorter lease terms. The industry is expected to see significant exit of start-up tenants and smaller occupiers as they cut on costs in this crisis scenario, the demand from large enterprises is expected to grow over the medium to long-term. The increasing need for flexibility and the competitive advantage of being a workspace expert will sustain the industry over the long term.