Why is a co-working company taking on rent of 4.8 lakh sq ft?

[Ashish jain]

In a major move that is in line with increasing demand for flexible office spaces, Smartworks, one of the largest co-working space providers, has leased out around 480,000 square feet in Gurugram's DLF City-Phase 5. The six-year deal, with an annual rent of ₹94.68 crore, is testimony to the company's focus on increasing its presence in business districts.

The leased area comprises six floors, which also include the ground floor, and has 794 car parking lots, addressing the requirements of contemporary businesses. The lease agreement involves a monthly rent of ₹7.89 crore, or ₹165 per square foot, for a security deposit of ₹47.35 crore. A 9% rental growth is to be put in place in November 2027, aligning with market forces.

This fourth managed campus is Smartworks newest facility in Gurugram, joining others at Golf View Corporate Towers (Golf Course Road), RK 4 Square (Cyber City), and ASF Insignia (Vatsal Valley). The firm aims to establish this center by February 2025, augmenting its services in the area.

Smartworks' founder Neetish Sarda reinforced that the move is in accordance with the organization's vision to enable businesses by offering customized office spaces in campus-style large-sized properties.

Smartworks has been consistently increasing its footprint over the last few months. In August 2024, the company leased about 613,000 square feet at Pune for around ₹50 crore annually.

This aggressive expansion plan puts Smartworks in a position to serve the changing needs of businesses looking for flexible workspace options, solidifying its position as a major player in the co-working sector.