Managed space operator Simpliwork has leased 350,000 sq ft office space across Bengaluru and Hyderabad to large enterprises as corporates look at flexibility at the workspace. In Hyderabad, it has rented space to semiconductor company MosChip for setting up its headquarters, and another 150,000-200,000 sq ft to one of the largest financial firms.
“Given how dull the last year was, this year started on a pretty strong note. There has been significant demand across offices sizes, from companies looking at 100 seats to companies looking at 1,000 seats. I think there are a lot more enquiries and action in the market,” said Kunal Walia, founder, Simpliwork. The firm has also leased space in Mumbai, to Siemens Healthcare in Godrej One, Vikhroli.
Simpliwork has also signed up with US-based company AppsTech and with Canadian firm Tower Automotive, which is into auto manufacturing, supply chain and peripherals. “Most of the companies are purely looking at managed spaces that can reduce their capex,” said Walia.
Simpliwork also plans to roll out 10-15% of its portfolio under the ready-to-move-in space. It plans to launch spaces with 100 workstations or 300 workstations, totalling 340,000 sq ft built-in spaces, that customers can occupy immediately. “This year, the demand for such spaces will be higher. All of this will come into the market in the next three months, which is why we are hoping that with the vaccine rollout, etc., more clients will be looking at June-July this year to take up spaces that they can occupy immediately,” said Walia.
Currently, Simpliwork has 2.7 million sq ft space under management and it expects to double the area by the end of 2021. Large enterprises are expected to drive demand for flexible spaces irrespective of economic uncertainties. According to industry estimates, flexible space segment is expected to grow 15-20% annually on average to more than 50 million sq ft by 2023.