Demand For Office Space Skyrocketing

July 24, 2013     No comments

The demand for virtual offices is expected to grow by 25% on a year to year basis as young entrepreneurs are finding that working in a shared office space is a solution to their business needs.

The idea of shared office space works similar to renting an apartment, someone owns a building with rooms that he leases to tenants.

“Shared offices are popular among new companies and SMEs as it provides them flexible working conditions. Such set-ups also help companies in managing spendings, especially, when they cannot project growth,” property consultant Knight Frank India’s director – occupier solutions Viral Desai said.

“This concept picked up mainly during recessions,” he said.

“At present, this market is at a very nascent stage, but it works best in times of turnover pressure. It offers saving to the clients, as they do not have to spend on renting a property and setting up office infrastructure. We expect this market to grow by 21-25% every year,” Verma, RegusIndia CEO, said.

Currently, there are around 80-100 shared offices across India, Imperial Servcorp India country head Meenal Sinha said.

“Earlier, serviced offices were largely concentrated in the large six-seven cities. But with the growing demand, it has expanded to small towns and cities as well. These centers can offer small entrepreneurs and SMEs best location to meet their needs at affordable rates,” she said.

Many tenants are attracted to the idea of having a receptionist, having a professional mailing address, a meeting room, and working with other people that have similar interests and even different people that can help them think outside the box in managing businesses.

Desai also observed that for large corporates, mainly the IT and ITeS sectors where the attrition rates are high, such a model can work best as it will give the employees the convenience of walk-to-work.

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Chambers Business Suites
A privately held company located in Chicago, IL. Chambers Business Suites provides shared office space with a unique all inclusive pricing model.

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