Co-working space providers seek rent relief

BENGALURU: The Covid-19 outbreak has forced many co-working space providers to renegotiate rentals in the wake of lockdowns across the country.


Firms like WeWork,Smartworks, Simpliwork and Awfis Space Solutions that ran operations across major cities have either shut down most offices or are operating from partially open facilities.




ET has learnt that these firms have written to their landlords for a rent free period ranging from one to three months and plan to reach out to government electricity departments to forego electricity bills during the period.


Smartworks that operates 31 centres totalling 80,000 desks said landlords understand the crisis and are open to discussion.


“Given the unprecedented scenario due to the Covid-19 epidemic, we have been in close communication with all stakeholders, clients and landlords. Overall we expect the entire CRE space to be affected in the short term for certain,” added Kunal Walia, CEO, Simpliwork Offices. Working players said their clients wont be able to pay rent on time and many have asked for concessions. In lockdown for almost a month and many customers are saying they won’t pay, Awfis Space Solution that has 63 locations with 35,000 desks is also working with it’s landlord to seek waiver on rentals, CEO of the Black-Rock funded co-working operator said.


The Indian co-working segment currently has more than 200 players operating across the country.


Source: https://realty.economictimes.indiatimes.com/news/commercial/co-working-space-providers-seek-rent-relief/74959568

April 03, 2020

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