Emerging trends in coworking space in 2023

Demand for coworking spaces has seen a record rise this year as growing number of companies adopt a hybrid model post the two long year of the pandemic. Occupiers have continued to increase their share of flex spaces in their overall real estate portfolio. Coworking office providers are laying out innovative ways and chalking out new strategies to tap this rising need for shared spaces in the office market. As we move into 2023, here are few key trends that we think may emerge in the upcoming year.

Increase in demand for flex spaces with longer lock-ins
Flex spaces offer a viable option as organisations wait for clarity in the overall economic environment. Organizations are continuing to see value in adopting a hybrid model in response to the lingering uncertainty which many believe may last for nearly a couple of more years. In such a circumstance, flex spaces are becoming more integral to workplace strategy as companies maintain a cautious stand and tide through the aftermath of the pandemic. Hence, many large multinational organisations are looking for longer lock in period of 1-2 years as compared to shorter terms of less than a year while taking up shared offices.

Occupiers demanding utilization across flex operators pan India network
As companies try to adapt to the new normal, one of the challenges of employers is how to bring employees back to office without sacrificing their health and comfort. With workforce still spread across the country, companies are finding more sense to set up flexible workspaces beyond the metros and provide the convenience of working from an office environment. Co-working office providers, which have a pan India presence, are seeing rising demands for flex spaces in smaller towns especially from companies which intends to provide their employees the flexibility of working from anywhere. This has also given boost to shared space providers to expand their businesses in tier 2 cities and beyond.

Evolution of product mix of both fixed and flex seats
The increase in demand for seats in coworking offices has forced companies to find innovative ways to meet the needs of their growing space requirements. Corporates are exploring ways to accommodate as many employees as possible in an office space. However, the peak demand for spaces in coworking offices in some of the key markets meant that companies are now open to taking up a combination of both fixed and flex seats options. Organisations are now striking such deals with co-working office providers in order ensure employees find a spot for themselves at any given point in time.

Distinct categorisation of local and national players
A gradual segregation between national and local players in the coworking office market is seeping in. Some of the shared space providers are focussing on providing services at the local level by offering niche services, differential pricing and customised services to users with specific needs and demands. This phenomenon is also significant as it indicates demand for spaces across the spectrum while local flex spaces are responding and capitalising to it.