Signing a permanent office lease is a big threat even for big organizations. It’s tough to identify how much space you will require in a year or two. And, if something goes wrong, you could be left with vacant desks and serious bills to pay. Similarly, entrepreneurs don’t feel like paying for real estate until they are sure that the project is going to fly.
At the instance of starting up, expenses of setting up an office can be a main stumbling block for entrepreneurs. But these days’ startups are finding rent-free workspaces. There are accelerators which provide this ability to start ups, usually in swap over equity.
But at present entrepreneurs are searching other types of free space close at hand.
Here are 3 types of workspaces that entrepreneurs can get for free:
- Community-Sponsored Space
To support fiscal development, chamber of commerce in a few cities offer free office space with the help of local government and businesses. The programs need free office space with the assistance of local government and businesses. These programs need entrepreneurs to put forward a business idea and show its growth potential.
Possessing physical office space is very legitimizing. Meeting with business people and accountants in the free office space rather than at home makes a huge difference. Startups are also stimulated to take part in group events.
- Co-working Space
Co-working spaces provide an office-like atmosphere free of cost to entrepreneurs, generally lone founders who would otherwise be working from their homes. Organizations interested in aiming entrepreneurs run these competencies, and some have an application process. The shared space also gives a routine to entrepreneurs and keeps them from going unoccupied at home. But these are unlike regular office. Most co-working spaces have big tables, making it difficult to make phone calls or hold meetings due to noise level. You also cannot add employees easily because of inadequate space and shortage of dedicated desks.
- University Space
To develop entrepreneurship on campus, a lot of universities provide free office space through on-campus incubator programs. Claimants must offer a practical business strategy to meet the criteria for space, and nearly every university incubators need that at least one member of the startup be an alumnus or student.
Bangalore Surpasses Demand for Office Space
Cushman & Wakefield’s (C&W) and Global Real Estate Institute’s (GRI) yearly report ‘Embracing Change – Scripting the prospect of Indian Real Estate estimations the total commercial office space requirement to be just about 200 million sq. ft in the leading 7 cities as against a slightly higher supply of 243 million sq ft.
The report considered demand and supply for Mumbai, NCR, Chennai, Bangalore, Pune, Hyderabad and Kolkata in which Cushman & Wakefield Research team, projected demand and supply for the period 2011-2015.
Bangalore will observe the maximum demand of roughly 57.3 million sq ft. followed by NCR (34.4 mn sq ft.) and Mumbai (33.9 mn sq ft). However, during this period, Hyderabad, Chennai and Kolkata are anticipated to observe an improved rate of growth as against the others.
The overall estimated supply for the era for the top 7 cities will be just about 243 million sq.ft. which is greater than demand by 17%.
The maximum projected supply of Grade A office will be observed in Mumbai (78 million sq. ft.) followed by NCR (40 mn sq.ft.), Chennai (30 mn. Sq.ft.) and Pune (29 mn. Sq.ft.).
With the exemption of Bangalore, where demand outshines supply, all other cities are anticipated to experience some oversupply situation.
In Mumbai, supply is anticipated to exceed demand by 125% by the end of 5 years and thus is projected to experience some downward pricing tendency.