Flexible workplace firm BHIVE signs 200,000 sq ft office space deal in Bengaluru

Flexible workplace firm BHIVE has signed a 200,000 sq ft office space deal in Bengaluru to expand its operation in one of the single largest co-working deals in the city.

The upcoming co-working space, along with F&B and retail space, can seat up to 5,000 employees. The property is expected to be operational by mid-year and has a 12 year lock-in period.

"We signed up nine properties from September till March and have gone from 2 lakh sq ft in September to 7 lakh sq ft now," said Shesh Rao Paplikar, co-founder of BHIVE Investech, BHIVE’s fractional ownership arm.

BHIVE Investech is also in talks with investors to expand its network to over one million sq ft by 2023.

The company's investment arm, BHIVE.fund, plans to raise $1 million of pre-series A investment to fuel its growth and has recently secured funding from Zerodha's Nikhil Kamath.

"We took full advantage of the downtime and got great deals and terms on properties. The platform plans to leverage the funds to build comprehensive technology to scale operations, build a strong investment team, and educate customers on the alternative asset space," said Paplikar.

Last year, the co-working operator BHIVEventured into fractional ownership of commercial offices under the BHIVE Investechplatform.

The new venture, registered in the US, will not only invest in acquiring commercial real estate in the IT capital of India but also explore new geographies.

The firm currently operates 700,000 sq ft of office space across Bengaluru and counts companies like Cult.Fit, Virgo Designs, KreditBee, and Rentmojo as its top clients.

In the post-Covid world, the flex space segment is expected to grow and become a mainstream occupier segment, with operator-landlord partnerships creating superior office assets.

The co-working office market is expected to double its footprint across the top seven cities by 2025 to 75 million sq ft and cross the 100 million sq ft mark by 2030, according to Colliers.