With the advent of the internet, smartphones and now apps, it has become possible for new businesses to reimagine traditional business models and solve problems with technologically enabled solutions that serve millions.

This is further fuelled by a millennial generation who not only embrace technology, but also share their entire lives on social media and thus value collaborative, community-based experiences in contrast to privacy which was valued more by the previous Generation X.

While the world has seen disruption across a plethora of industries, over the last two generations, workplace design has only seen linear growth.

Let’s assume a small business has approximately ten employees on average. The collective knowledge of that small business would therefore be restricted to ten minds. If these ten people worked out of a shared office space, some of which host anywhere from 1,000 to 4,000 people , then the collective knowledge of that small business expands to at least 1,000 people. Due to sheer diversity3 7of the member base, meaningful connections between members could result not only in business opportunities, but also creates a vast sounding board for ideas.

Furthermore, most small business are plagued with several day to day operational issues that are taken for granted if you’re working in a large enterprise. For example, small business don’t typically have dedicated legal or tax experts in-house. Within a coworking space, members are likely to not only find such professionals, but will be able to seek assistance from fellow members who may specialize in

anything from social media to interior design.

If a small business were to set up their own isolated office, they would be burdened with multitude of financial challenges such as large security deposits, investment infurnishing and equipment. This is furthered by operational headaches such as managing utilities (such as internet and power outages) and administrative manpower. Coworking spaces are not only financially more lucrative due to the avoidance of an upfront investment, lower monthly cash out flow and the flexibility offered by easy month-to-month contracts, but they offer compelling financial savings due to the opportunity to leverage the existing network that members could connect each other with. In addition, coworking spaces provide inspiring work spaces designed to foster collaboration amongst members. As the asset class matures, India is witnessing an influx of luxurious coworking offerings at compelling prices that appeal to every small business’ workspace aspirations. Coworking spaces promote cross-pollination of ideas by providing members with diverse events to participate in and multiple opportunities to build work relations.This mix of networking, educational and recreational events are conducted to keep the members motivated and inspired towards their goals.

Coworking spaces promote cross-pollination of ideas by providing members with diverse events to participate in and multiple opportunities to build work relations

The Paradigm Shift to Coworking Spaces
According to Cushman & Wakefield, India absorbs a whopping 40 million square feet of new office space every year; small businesses contribute approximately41% of this demand. A surfeit of small businesses are already gravitating towards coworking spaces due to the community benefits, the high-energy work environment, the ability to leverage an extended network and the overall economic value proposition.

The Indian real estate market will experience a surge of coworking spaces this year, as over 200+ workspaces are expected to be launched. Further more, coworking spaces are now not just limited to metro cities, there is high demand for them in tier II cities as well. Also, Mumbai although being second to Bangalore in terms of number of startups is fast gaining momentum as the city has a good mix of freelancers, independent consultants and entrepreneurs. These facts further fortify the growing demand for coworking spaces pan India. Our belief is that within five years, India’s office market will be further divided in to two asset classes; traditional office spaces - typically aimed at larger enterprises and coworking spaces - designed to address the needs of small businesses, with the latter contributing approximately30% of the country’s workplace demand.