by THO
Managed co-working firm Urban Vault has leased 1 lakh square feet of office space in Bengaluru from real estate company Brigade Group in order to expand its business and meet the rising demand for managed workspaces from domestic and global companies.
The new facility located in Brigade Summit, a mixed-use project by Brigade Group in the Whitefield area, comprises more than 2,000 desks and the per seat cost is around ₹9,000 and above per month, the company statement said.
Urban Vault is a Bengaluru-based self-funded managed workspace solutions provider with over 20 lakh square feet of office spaces and more than 30,000 desks in its portfolio.
The flexible workspace player is set to enter the Pune, Gurugram and Hyderabad markets by the end of the ongoing financial year. It is also eyeing an entry into Mumbai.
“We are in preliminary discussions with many commercial real estate developers and individual landlords for taking office space on lease in these 4 key markets (Delhi-NCR, Pune, Mumbai and Bengaluru),” said Amal Mishra, Co-founder and CEO, Urban Vault.
Among 7-8 major cities of India, Mishra said, Bengaluru has always been a preferred location for global and domestic companies because of availability of English-speaking tech professionals coupled with strong supply of prime office spaces at an affordable rent.
Also Read: Co-working firm Incuspaze leases 1.15 lakh sq ft office space in Bengaluru
In the 2023-24 fiscal year, Urban Vault clocked a turnover of over ₹100 crore, with an 18% year-on-year growth in profit after tax. The occupancy level in its operational centres stands at 91%, per the company statement.
Rising trajectory of flexible office segment across India
The flexible office space segment in India has demonstrated an upward trajectory following the Covid-19 pandemic, gaining increasing market share within the larger commercial real estate sector. Large enterprises too have shifted gears in favour of this category amid adoption of a hybrid work culture.
Also Read: Led by Bengaluru, office leasing in India expected to touch 80 mn sq ft in 2024: Report
According to a June 2024 report by property consultancy Colliers, the flexible office space segment across the top six cities in India registered its highest ever quarterly demand in the April-June period at 2.6 million square feet. Bengaluru and Delhi-NCR alone accounted for 65% of this demand.
