25 October 2024 01:31 am Views - 85
By Nuzla Rizkiya
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Manish Khedia Pic by Nisal Badhuge
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S r i L a n k a ’s f l e x i b l e w o r k s p a c e i n d u s t r y i s poised to witness a notable expansion in the coming months with The Executive Centre (TEC) announcing a US$ 750,000 investment to establish a new office space at the World Trade Center (WTC) in Colombo.
The global flex office space provider is expanding its footprint in the island by setting up a brand new workspace on Level 23 of the East Tower at WTC, adding to its existing operations on Levels 35 and 37 of the West Tower as well as its offices at the Maga One building in Colombo 5.
“The Sri Lankan market has been fantastic for us over the past two years. We’re making this investment with strong backing from many of our clients to expand our services here. We see significant momentum in the market and our investment aligns well with this expansion opportunity,” TEC Managing Director for West India, South India and Sri Lanka Manish Khedia told Mirror Business in an interview.
He noted that the global flexible workspace industry has experienced consistent growth over the past 15 years, especially after the Covid-19 pandemic which further accelerated the shift of companies moving towards flexible office spaces that offer lower investment risks compared to traditional long-term leases.
Sri Lanka, in particular, is a favoured destination among global corporations due to the country’s strategic location, offering broader access and connectivity within the wider Asian region.
According to Khedia, 7 5 p e r c e n t o f T E C ’s clientele in Sri Lanka are multinational corporations, and the company holds a 35 percent local market share in the demand for flexible office space.
“Since our incorporation here in 2017, we have been running at about 95 percent average occupancy in our office spaces, but today we are out of space. Sri Lanka is perfect in terms of locations. We’ve seen significant growth over the past couple of years and the demand is bouncing back strongly,” Khedia said.
He shared that local demand for their services is primarily driven by sectors such as IT, consumer goods (FMCG) and travel companies and a majority of them prioritise security in their workspaces.
Although the flexible workspace industry in Sri Lanka took a hit from the crisis in 2022, the company is optimistic about the future prospects with its strategies focusing on hospitality and premium service to gain a competitive edge in the domestic market.
“Compared to 2023, we have grown by 35 percent year-on-year in 2024. We are looking to close this year with an EBITDA revenue of US$ 420,000, compared to last year’s US$ 280,000. Our intent is to maintain a minimum of 15 percent growth and reach an EBITDA revenue of US$ 2 million. We are hopeful that within the next three years, we can reach US$ 3 million,” Khedia said