Co-working spaces hope to bounce back

KOCHI: The Covid-19 outbreak and the ensuing lockdown in the country sounded the death knell to many businesses. But, the one industry considered to be especially hit was the rapidly growing co-working sector which was set to accommodate 13 million working Indians by the end of this year. Social distancing norms necessitated to keep the virus at bay brought co-working spaces, forged on the concept of a shared work environment, to a screeching halt. However, all doesn’t seem to be lost. If the latest expert predictions are anything to go by, the industry is expected to bounce back stronger than ever. 

“Co-working spaces offer a high level of flexibility to companies. In the post Covid world, this model is going to be in huge demand. Employees will now be comfortable working remotely and small spaces catering to these needs will take off. So, there is going to be a huge disruption in the way people work. The employee and the employer who have been so far under the same roof will be dispersed,” says Saji Gopinath, CEO, Kerala Start up Mission. 

While taking stock of the damage caused due to lockdown, private co-working space operators in the city are looking forward to the light at the end of the tunnel. “The situation was unanticipated and it has badly affected our business. Around 20-25 per cent of our desk spaces have been left vacant as companies have withdrawn. But these have all been startups, corporates are still holding on. Co-working players will continue to feel the pinch at least for the immediate future. Our expansion plans to Thiruvananthapuram have been put on hold. However we are anticipating a lot of potential in the long term,” says Joe Alapatt, director of Centre A, one of the largest spaces in Kochi with close to 500 seats.

Although co-working operators in the city have deployed safety and hygiene measures, including placing sanitisers on the premises, thermal screening at entrance and restricting the capacity of common areas, these operators are recording sparse attendance of employees. “On an average, only 20 per cent of employees from each company is currently working out of our facility,” adds Joe. 

Facing a similar situation, Innerspace Coworking, a new entrant to the sector in Kochi, hopes to see the turnout increase by August. “We restarted our operations in the first week of May by reducing our desk space by 20 per cent. We would have been running at 100 per cent capacity, if not for the pandemic but the slump is not going to be forever. Everyone wants to get back to business and companies will prefer flexible spaces rather than invest in permanent facilities,” says Niyas Muhammed, general manager, Innerspace.

Govt steps in
Even as private players wait for the tide to change, the Kerala government under the aegis of IT parks and IT department is moving swiftly on a proposal to develop work-near-home co-working spaces across the state. As many as 100 centres are set to be opened by October. 

“The priority is to set up these facilities in municipalities rather than municipal corporations. Our vision for these spaces is that ultimately even government employees can start working from here because remote working is here to stay. Each centre will be of 5,000 sq ft. We will also be looking at private partnership and investment opportunities especially from the NRK population which has returned,” says Sasi P M, CEO, Kerala IT Parks.With civil infrastructure facilities like shopping spaces, health centres and cafes present everywhere, Kerala stands at a unique advantage. 

Bitten by Covid-19 
Co-working sector was set to accommodate 13 million working Indians by the end of this year. Social distancing norms necessitated to keep the virus at bay brought co-working spaces, forged on the concept of a shared work environment, to a screeching halt.