SHARED OFFICE SPACES: BETTER COST MANAGEMENT FOR BUSINESS

A businessman who earns 7 and saves 5 will be considered much wiser than an entrepreneur who earns 10 and spends 9. Means, cost management is an important tool to increase profits. Let us understand how Shared Office Spaces enable cost management.

One Pays Only For the Space Consumed

While taking an office on rent, one has to bear the rent of not only the room, but also of all the common areas and the facilities of the building like- lift lobbies, corridors, reception area, restrooms and pantry. However, in co-working or shared arrangements, one pays only for the space one uses.

Saves Expenditure on Furniture & Equipment

Shared spaces are not like bare or warm shells. It always comes fully furnished and in a tip-top condition. It is the responsibility of the service provider to have all the required equipment pre-installed and updated time to time. The client just has to go, sit and start working.

No Running and Maintenance Cost

It’s again the service provider’s responsibility to repair, maintain and manage the running cost of the office. This not only saves cost but also a lot of time and efforts.

Zero Staffing Cost

No attendance, no hiring spree and no burden of staff wages. Because all the necessary personnel like- receptionist, peon, security guard, pantry workers etc. comes along with the package.

No Overhead Expenses

Here, all the utility services- electricity, water, cleaning etc. are borne by the service provider. It’s not just about expenses, it’s also about relief from headache of maintaining records of the bills and settling them before the due date.

Autonomous Approach: Business is sometimes unpredicted. With the change in situations, requirements from office space also changes. In normal course, it’s difficult to expand, contract or shut the office at short notice. But in shared spaces it can be done on the spot.

Easy to Book: Anyone, anytime can approach a business center where shared office spaces can be booked without taking services of brokers and agents. This also saves a good percentage of amount.

No doubt, due to cost, staff and unpredicted conditions, startups prefer to work in co-working or shared spaces. But the fact is that many corporate giants have also switched over to such working arrangements because their employees wanted to. Instagram, Uber, Spotify, Amazon and Microsoft are some of its examples. The concept of co-working or shared working started in 2005 in USA. Today USA holds more than 18% of the global share. As per a survey, the co- working sector is going to cross $ 13 billion by 2025. In India, this concept gained momentum during and after the pandemic period. Since 2021, a co-working sector in India is growing at a pace of more than 21%. The world economies are now looking towards India for market expansion, as per an estimate the shared space will cross 50 million sq. Ft. mark by Q1 2024. Percentage-wise, the co-working market share in India is more than 3% of the total commercial office space in the country. In India, there are more than 2000 shared office spaces are available at present.

It seems the shared or co-working office space culture is going to gain more momentum in the coming years.

For sale/purchase/leasing contact Gitin Suri at 9810150047