The Bengaluru-based firm also aims to double its inventory across the country to 6 million sq ft by the end of 2022
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Managed office space provider Simpliwork said it has expanded its footprint to Chennai and plans to capitalize on accelerated demand for flex offices amongst companies. It has opened a 64,000 sq ft centre in Chennai, in a property developed by K. Raheja Corp., and has leased the space to credit card and payment solutions provider, SBI Cards Ltd.
The transaction was facilitated by property advisory JLL India.
The Bengaluru-based firm also aims to double its inventory across the country to 6 million sq ft by the end of 2022.
“2021 has been a milestone year for Simpliwork in terms of business growth. As an industry leader, we have been able to offer agile solutions vis-à-vis world-class offices across leading markets. Chennai, our latest addition, is a strong economic centre. The city offers immense potential that attracts large enterprises across industries. Simpliwork, with its supply of Grade A flex offices, is looking to capitalise on this trend and set new benchmarks in the outsourced office sector," said Kunal Walia, founder and CEO, Simpliwork.
Over the next 2 years, Simpliwork plans to invest ₹650 crore in creating Grade A offices for leading corporates across the country. In the current financial year, Simpliwork has registered a 5x growth in turnover as compared to last year.
Rahul Arora, head of office leasing advisory, India (regional managing director, Karnataka and Kerala), JLL said, “While the Indian flex space market has seen monumental growth over the last few years, what is pertinent to note is that the current flex market penetration in total office stock stands at approximately 3.5%. We are still catching up with mature markets across the globe, where the market penetration of flex spaces is over the 5% mark. India’s average penetration rate for the top seven cities could reach around the 4.0-4.5% mark over the next two years. There is still substantial room for growth in the flex segment, and buoyed by the demand for flexible, fully amenitized, and collaborative work environments, this segment is only expected to see a significant upswing."