Skootr plans to expand portfolio to 4 million sq ft

Premium managed office space provider Skootr plans to expand its portfolio to 4 million sq ft from the current 4 lakh sq ft on the back of a rise in demand for flexible spaces by the large corporates.

“We are in talks to acquire assets in Bangalore, Mumbai, Pune and Chennai as we don’t have any presence there. In addition, we will expand in existing cities – Gurgaon, Hyderabad and Jaipur,” said Rajat Johar, Country Head, Skootr.

Of the four cities the company plans to enter, Bangalore may materialize first where Skootr is looking for a Grade A building.

Co-working spaces are expected to see a rise in absorption of seats of up to 30%, according to industry experts. Seat absorption is about 15% of the total office leasing by corporates in 2021 and the share is expected to increase further.

“By 2024, we want to reach the 4 million sq ft portfolio of which 1.5 million sq ft will be in Hyderabad. We are witnessing a lot of transactions in Hyderabad and more than 60% of our current space is in that city,” Johar said.

The company has decided to not go for space less than 50,000 sq ft and has not kept any upper limit.

“We will go where our existing clients want us to go and acquire assets as per the requirement of the client. We customise space for MNCs and post covid, companies are ready to spend extra for better service,” Johar added.

In the last three months, Skootr has leased close to 1.35 lakh sq ft in Gurugram and Hyderabad. The company has onboarded clients in the space of financial consultant services, gaming services, research consultancy and legal advisory.

The company also offers fit outs and leasing solutions to large and mid-sized corporates under a separate vertical called Skootr FinSave and it has reported an uptick in the demand.

“We change the entire experience of the office through this model and that is what companies are looking for. Companies who are with us in Hyderabad, want us to do the fit out for their office in other cities as well,” said Rahul Sarin, National Business Head, Skootr FinSave.

Skootr Finsave offers fitout as a service.

The flexible workspace industry has become more relevant for organisations amid the pandemic as companies across sectors reassess their real estate holdings, both long-term and short-term, to make capital expenditure more efficient.

According to a JLL report, 66% of employees expect to be able to work from different locations in the post pandemic environment.

Coworking operators have reported the highest number of seats transacted in a month in September since the beginning of the pandemic as COVID19 pushed the demand for flexible spaces and occupiers took up nearly 23,500 coworking seats across the eight markets during the July-September quarter, the highest this year.


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