Coworking office provider 315Work Avenue has picked up five entire floors with office space spread over 1.62 lakh sq ft in a commercial project Raheja Woods in Pune’s Kalyani Nagar locality through a long-term lease of five years.
This deal takes the company’s total office space in the tower to nearly 2 lakh sq ft as it had recently leased 33,000 sq ft here recently.
The company has leased the space through its subsidiary 315 Work Avenue Pune Spaces from owner of the property MK Profinlease for monthly rental of nearly Rs 1.32 crore.
The lease agreement includes a clause to escalate rentals by 5% after every 12 months. It also includes a lock-in period of 14 months for the licensee 315 Work Avenue, showed the documents accessed through FloorTap.com.
“The coworking sector’s impact is poised to amplify in the future, driven by the fundamental transformation work dynamics have undergone which is unlikely to revert. Pune has been an extremely strong market for us to strengthen our footprint and we will continue to expand our presence in the city,” said Manas Mehrotra, Founder, 315Work Avenue.
The coworking firm now has five centres spread across 0.5 million sq ft in Pune and aims to double its presence in the city in the next 12 months, he added.
Overall, 315Work Avenue currently manages 2 million sq ft space totalling around 40,000 seats spread across multiple prime locations in Bengaluru, Chennai, Mumbai, and Pune.
ET’s email query to MK Profinlease remained unanswered.
315Work Avenue has paid an upfront security deposit worth Rs 4 crore for the registration of the latest deal that took place on August 18. As per the agreement, the managed office space provider will get a rent-free period until October end.
The lease provides 315Work Avenue Pune Spaces exclusive access to parking slots for 230 two wheelers and 115 cars in the tower.
The said commercial tower with six upper floors and three levels of parking was acquired by MK Profinlease from its developer K Raheja through a conveyance entered between them in December 2006.
India has emerged as one of the fastest-growing flexible office space markets globally driven by rising demand for managed space solutions from both large enterprises as well as agile startups across geographies and industries especially after the Covid19 pandemic.
The operational flexible office stock across top seven cities of the country has touched over 53 million sq ft with nearly 75% growth from the pre-pandemic level of around 30.3 million sq ft.
Post-Covid, with the new hybrid model of working becoming more and more popular among mid- to large-sized enterprises, the demand for outsourced offices has risen significantly in the past two years, and is continuing to thrive. This is also driving the flexible office providers’ expansion plans.
Published On Aug 30, 2023 at 09:26 AM IST
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