Space Take-up By Co-working Players Touches 2 Million Sq Ft Mark In Q3 Of 2019: CBRE
New Delhi: The fast expanding co-working industry in the county has taken up 2 million sq ft of space in the third quarter (Q3) of the current year, according to a report by real estate consultancy CBRE.
Bengaluru accounted for the highest share of co-working space take up. The total co-working space in the city now stands 7.8 million sq ft. The city has a flexible space penetration of 4.6 percent.
The total co-working space in Delhi now stands 6.7 million sq ft. The national capital has a flexible space penetration of 6.1 percent.
The total shared space in Mumbai now stands 7.8 million sq ft. The city has a flexible space penetration of 3.7 percent.
“We anticipate that flexible office segment will remain high on the investor radar as well. We thus expect flexible space leasing to be around 9 million sq ft in 2019 and around 9-10 million sq ft in 2020,” said Anshuman Magazine, Chairman and CEO, India, South East Asia, Middle East and Africa, CBRE.
The number of small to medium sized deals ranging from 20,000 sq ft -1 lakh sq ft jumped from 49 percent in the second quarter (Q2) of 2019 to 54 percent in Q3 of 2019. The number of larger deals exceeding 1 lakh sq ft declined from 14 percent in Q2 of 2019 to 12 percent in Q3 of 2019.
The deal sizes in flexible space segment were bigger on an average in India as against in APAC region in Q3 of 2019. This quarter also saw an increased inflow of funds with around USD 100 million pumped in by angel investors or PE funds or debt funds.