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.
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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|
|iKeva||Kurla||Art Guild House||10,395||102*|
* -Fitted out, Source : CRE Matrix