Co-working companies lag in attracting multinationals, says Anarock

Companies refute claim, say they have a sizeable number of clients

Property consultancy Anarock Property Consultants on Wednesday said that co-working spaces are failing to attract large multinational firms (MNCs) despite low rents. However, co-working firms do not agree with Anarock. They say they have a sizeable amount of MNCs.

Anarock said MNCs are not taking up co-working spaces because the latter lack separate canteens or pantries for occupiers, and they also bar corporates from organising events in common areas. The consultant said maintenance of these properties is another challenge. 

Abhishek Goenka, chief executive at co-working space provider CoWrks said MNCs constitute more than 75-80 per cent of its member base and have been growing steadily.

Goenka said the demand side of their business is very robust.  

“We are proud that many of the largest companies in the world are working from our centres, and this is testimony to our philosophy of being a space provider of choice to the best of enterprises,” he said.

He added that they have always created large event and community spaces, as well as common areas for dining and recreation.  "These are available for use by our members as part of their pricing with us. We invest heavily in managing its operations," he said.

Karan Virwani, CEO, WeWork India, said the company provides office spaces inside WeWork spaces, which are completely separate and customised according to the requirement of members.

"Customisation can mean creating a separate floor or putting in a desired number of meeting rooms, canteens, larger pantries and common areas for events and gatherings which the company might like to host," Virwani said, adding that they allow large- to medium-sized business owners to use their spaces according to their requirements, and to focus on running their business rather than their offices.

On maintenance of properties, Virwani said WeWork works with Embassy Services and leverages its expertise of over two decades to not only manage facilities, but to also reduce operational costs.

However, Virwani did not answer a query on the amount of space leased to MNCs this year and last.

Anarock said that in Bengaluru, co-working spaces charge nearly 20 per cent lower rentals in key areas such as MG Road, Millers Road, Vittal Mallya Road, Residency Road, and so on. 

The average monthly rental for flexible workspaces is between Rs 7,500-15,000 per desk, while rent for traditional office spaces is between Rs 10,000  to Rs 18,000 per desk.

In Mumbai Metropolitan Region, co-working spaces come at 14 per cent lower rentals in key micro markets such as Ballard Estate, Colaba, Churchgate, Fort, and Nariman Point. The average monthly rental in co-working spaces is between Rs 18,500  and Rs 28,500 per desk, while for traditional office spaces, it hovers between Rs 24,500 to Rs 30,000 per desk, Anarock said.

In NCR’s Gurugram, flexible workspaces command only six per cent lower monthly rentals at Rs 9,000-14,000 per desk, against Rs 9,500-15,000 per desk in regular office spaces, it said.