In the post-COVID world, co-working to reemerge stronger
As part of the consolidating and synergistic exercise of the co-working sector getting more organized, mergers of unorganized smaller players will merge with more prominent players.
Apart from upending the world in multiple ways, the pandemic also transformed the way all work. The question of its impact on the co-working spaces and commercial leasing arises from the virus influencing the real estate and economy. But the disruption caused by it is temporary for the co-working industry to revive with the emerging is the expectation. Thus, there is a need for agility to operate in the long term in the pandemic’s wake. The new normal will be “survival of the fittest.” In the post-COVID scenario, the changes in the co-working industry include.
The priority will be on health
In the post COVID world, the co-working spaces’ anticipation is more substantial with the business becoming resilient. Many companies get attracted by the flexibility and the fine-tuned strategies that promote a preventive, secure, and healthy co-working environment. Hence many companies prepare their employees for futuristic co-workspaces with optimism. There is an expectation that within a couple of months, the second wave will plateau. So there will be renewal on co-working spaces on safe interactions and social distancing during the post COVID era. Hence, e-businesses for offering higher safety, hygiene, and health levels are looking for such co-working spaces.
No loss of importance in office space
Since the benefits of working in a physical office in terms of productivity and cohesion last long, there will be no loss of importance of the office space, though it may exist with work from home. The conventional occupiers are now seeing the benefits of co-working while reducing costs that the corporate occupiers want. With inherent readiness and flexibility, only the co-working spaces are well-positioned for adapting that will redefine the future workspace.
Large companies want workspaces
For reducing long-term capital expenditure, large corporations are exploring the possibilities of leasing desks in co-working spaces. Large corporate companies will have a “central office” and many “smaller offices” spread across various parts of the city to bring in the hub-and-spoke model effect. More companies may adapt hybrid working models rather than the traditional office spaces. We expect shortly for the demand to rise for high-quality and well located efficient workspaces. It will result to be the more significant part of India’s commercial office portfolio.
De-densification to be the vital trend
A holistic business ecosystem provided by today’s organized working space operators is ready for recalibrating their trajectories. This new beginning gets started because of the de-densification of the space inventory, new techniques for the formulation, and a more adaptive and conducive ecosystem for coping with these disruptive elements. Hence for larger corporate de-densification seems to be the significant trend.
Increased focus on technical adaptation
With AI and machine learning becoming the most sought technology aspects, the world is at the cusp of tech disruption. To avoid the hassles of having an office space, larger enterprises want their office spaces that are productive, collaborative, and technologically advanced. Co-working players adapt a few technological interventions like virtual reality for office spaces and use IoT for asset management, mobile apps, spatial analytics, and visitors’ management systems. These interventions will offer its members a world-class wireless experience by enhancing the monitoring and reporting capabilities.
Consolidation is certain
Consolidation is ascending trend among the co-working sector as it is getting organized. Because of the consolidating and synergistic exercise, unorganized smaller players may merge with more significant players. Soon, there will be stake purchases and mergers because there are indications of potential real estate players and big global investors indicating their interest in the co-working sector. In the process, smaller players may close down their operations or get absorbed in mergers.
To conclude, co-working for aligning itself with the “new normal” will undergo many modifications. More customization and fluidity to the model will enable co-working to be the most viable option shortly. Without a doubt, the pandemic transformed both the experienced operators’ and occupiers’ way of revisiting space management now. The modern technology advancement coupled with flexibility has undoubtedly led the sector to its strong revival in the next few months. Hence the co-working spaces’ future looks exciting with colossal potential. But for the occupiers, it is imperative to have an extended focus on wellness measures like enforcing all-around safety protocols and regular hygiene in place daily for feeling safe.