Chennai: Co-working spaces are slowly moving away from Bengaluru and into Chennai.
Whether they are start-ups, small and medium-sized enterprises (SMEs) or multinationals, business is clearly booming in the co-working real estate space in southern cities.
Chennai is fast emerging as a destination for information technology, outsourcing, manufacturing and enterprises, that has led to the entry of global firms here, believes Neetish Sarda, founder, Smartworks.
“Our already functional facility in Guindy its first in Chennai was booked out 100 per cent within two months of its launch which has led to the opening of a new facility on Old Mahabalipuram Road,” he says.
Co-working spaces are usually rented out to start-ups because they are usually a small team, with small requirements.
However, nowadays big companies are also looking for such spaces. From Tata Communications and Otis Elevators to multinational companies like Amazon and Microsoft, companies are opting for co-working plug-and-play facilities, which offer flexibility and standardised services, rather than the conventional office space. “The easy plug-and-play method of a coworking space is attractive even for large companies,” says Neethish.
Co-working space cuts costs by 25 per cent up to 100 seats and are 20 per cent cheaper for up to 250 seats. In the conventional office scenario, companies have to lock-in additional space for future growth, which adds to the cost unlike the flexible office spaces offered by a co-working space.
“The lease period is also low, so the commitment is relatively low. On an average, the companies with us have locked-in three years,” says Neethish.