Smartworks Coworking Space leases 2,32,000 sq ft office space in Hyderabad

Flexible office operator, Smartworks Coworking Space, has leased 2,32,000 sq ft office space in Hyderabad, the biggest flex office deal in the city this year.

Total space taken up in Aurobindo Galaxy by Smartworks is over 4.6 lakh sq.ft totalling to over 11000 seats. Total tenure of this lease is 15 years.

With this, Smartworks’ total portfolio will increase to 31 centres and over 75000 desks across nine cities including Mumbai, Pune, Delhi, Hyderabad, Bengaluru, Chennai and Kolkata. Smartworks total pan India footprint is over 4.6 Mn sq.ft

“Our rapid growth and expansion in Hyderabad over the last three years is driven by strong market fundamentals and an uptick in demand for flexible workspaces post-COVID. Our follow-on expansion at the state of the art facility, Aurobindo Galaxy, is in line with our growth plans led by strong pre-leasing commitments from enterprises looking at fully-serviced flexible office solutions.,” said Neetish Sarda, Founder – Smartworks.

ET had reported about this transaction in April.

The transaction for this largest flexible office space in Hyderabad was facilitated by CBRE.

The Noida-based company has been growing in southern and western India since early 2019, and it expects to expand its workplace portfolio to 7 million sq ft by the end of this year.

According to estimates, flexible office spaces are expected to grow by an average of around 15-20% per annum over the next three to four years.

“The role of the workplace has changed significantly over the last year. Companies are becoming more successful in changing their strategies to ensure business continuity and are effectively leveraging potential changes in work styles. Hyderabad’s commercial market is making great progress especially when we consider office spaces, and the outlook looks promising,” Ram Chandnani, Managing Director, Advisory & Transactions Services, India, CBRE said,

As of September 2021, India’s flex stock stood at 39 mn sq. ft, with Hyderabad accounting for 6 mn Sq.ft. Hyderabad is further expected to see 15% flex stock growth in the next 2 years following the increase in demand for IT and extended IT corridors. Major growth drivers over the last year for the city have been the need for cost effective and flexible solutions, evolution of hybrid working and hub-and-spoke solutions and the increased adoption of managed office solutions by large enterprises.

“Hyderabad’s real estate market has proven to be extremely resilient over the last year and we at CBRE are optimistic that the market’s steady growth will continue in the future as well,” Anshuman Magazine, Chairman & CEO – India, South East Asia, Middle East & Africa, CBRE said.