Co-Working spaces on the rise in BKC, Mumbai.

After Wework, Quest Office, Awfis leases 24k sqft in BKC at MG or 42% revenue share.

Awfis, a co-working office space provider leased 23,648 sqft in Crescenzo, a commercial office building in Bandra Kurla Complex in 1 st week of August 2017. Awfis will be paying higher of minimum guaranteed initial rent of Rs 125 per sqft per month or 42% revenue share to the landlord DKJ Shelters. IDFC was the previous occupant at the said premises. Awfis negotiated 3 months’ rent-free period in the 60 months lease term to complete fit-outs in the leased premises at its own expense. The lease rent will increase by 9.6% to Rs 137 per sqft per month after 1 year. Additionally, the tenant has to pay common area maintenance charges which are currently estimated at Rs 10 per sqft.

Featured in: Business Standard

The space is expected to be operational by November 2017. The global leader in co-working space, Wework leased out entire 1.9 lac sqft in Sambhav/Enam Building, BKC in January 2017 and is expected to be operational by September 2017.

Co-working as a workplace option is gathering momentum in several gateway cities globally, and increasingly more corporations have already started to realise that it offers a great potential for fostering innovation. This trend is evident from the 1.5 million sq ft leased space occupied by Co-working office providers across major Indian metros over last 1-2 years.

In another transaction in July 2017, Quest Offices, a Co-working office space provider, has relocated from 1 st floor in Crescenzo building to 8th floor in same building. Quest has leased 13,469 sqft at initial bare shell rent of Rs 152 per sqft for period of 5 years. Additionally, the landlord will be doing fit-outs of the premises for which Quest Offices shall pay additional fit-out rent of Rs 30 per sqft per month for entire lease term.

We foresee the co-working office industry to pick-up in the future with initial interest in prime office precincts such as BKC, Andheri and Powai in Mumbai; Connaught Place, Okhla in Delhi; Koramangala, Whitefield in Bengaluru etc.

Some of the KEY leases by Co-working office providers in Mumbai are as follows

Co-working Firms Precinct Property Name Area Leased Rent in Rs per sq ft per month
Wework BKC Sambhav 1,88,488 226
Innov8 Andheri Boston House 11,800 44
iKeva Kurla Art Guild House 10,395 102*
Awfis BKC Crescenzo 23,648 125
Quest Offices BKC Crescenzo 13,469 152

* -Fitted out, Source : CRE Matrix