Omicron impact on co-working space

By Mr. Kushal Bhargava, Co- founder, MyBranch

People started working from office post omicron is the positive change that we have seen in the industry. This is because companies, especially small and medium sized entities, had started to adopt the shared workplace concept soon after the first wave itself. When the Omicron wave hit, most of them had already adapted to this culture.

Actually, the concept of a shared workplace started much earlier when a person would rent a single seat for office work in a common area. But like all industries, this concept began to evolve with time. Companies have caught on to the idea, and now rent space based on the number of seats that they require to run their organisation.

The shared or flexible office concept is now gaining momentum. A combination of ‘work from home (WFH)’ and ‘Work From Office (WFO)’ — known in the workplace jargon as ‘hybrid working’ — has now become the new normal. The rapid transition to this model has boosted the market for shared workspaces. It now makes better business sense for companies to move away from their traditional offices and opt for shared spaces. Most of their employees find hybrid working a very convenient option. While some employees work from home, others need to be present at the office to ensure the smooth functioning of the business. But with only a few employees having physically to be present at the workplace, the shared space concept is attractive. Companies have to spend less on infrastructure and renting costs. Operational costs can be reduced by as much as 15–20%.

Yet, we are still at the stage where space providers are trying to keep their businesses afloat after the impact of the CoViD crisis. They are offering lucrative deals and discounts. They have started prioritising the needs of their clients with flexible lease options, a shorter lock-in period and a hassle-free withdrawal process. They have developed a business-savvy approach and are able to negotiate enhanced contractual flexibility with developers. The spaces too have been revolutionised to accommodate the requirements of a wide variety of clients. Flexible desks, dedicated cubicles and well-appointed cabins offer the amenities of modern office buildings while maintaining social distancing.

Hence this is the best time to find affordable and comfortable spaces that suit individual companies and businesses. Flexible office spaces are a great way to collaborate and work together. The success of this concept is evident from the fact that both mid and large sized companies with small on-ground employee strength are finding this approach very convenient. The costs are well within their reach; and the space provides a genuine office ambience.

Hybrid workspaces are also well suited to employee needs. The idea can be taken a step further to include decentralised working spaces. In this model, an employee has the freedom to choose any co-working space close to their home. This offers a convenience that was not experienced by employees previously, especially in the metros where commuting distances can be huge. It also reduces the strain on private and public transport services, and minimises congestion on the roads.

The report indicates that despite certain delays in finalising contracts, the overall business remains on track. The rental collection ratio is almost 100%. Demand for grade A office supplies peaked after the pandemic. Occupiers are now becoming choosier about basic facilities such as larger and more open spaces, and proper seating with emphasis on social distancing.

Shared office spaces have become the new work culture in the corporate world. The work paradigm for employees and companies is likely to see a shift in this direction in the immediate future.

Corporate Comm India (CCI Newswire)