Managed Offices: Enterprise Focus Drives CRE Growth

The commercial real estate landscape in India is undergoing a structural transformation, moving beyond traditional co-working models to embrace large-scale, fully managed office campuses tailored for major enterprises. This strategic pivot, exemplified by Smartworks, India’s largest listed managed office operator, underscores the economic advantages of specialization and scale in a capital-intensive sector. Founded by Harsh Binani and Neetish Sarda, Smartworks carved its niche by focusing on multinational corporations (MNCs), global capability centers (GCCs), and large Indian companies, rather than the broader startup ecosystem.

This distinct approach was inspired by observations of integrated, sprawling tech campuses overseas, a model Binani and Sarda identified as a missing link in the Indian market. Despite initial hurdles in securing landlord confidence, Smartworks demonstrated its operational capabilities, notably by leasing a substantial 300,000 sq ft building in Bengaluru in late 2017. This pivotal move solidified their commitment to large enterprise clients, a decision that proved instrumental in differentiating their service offering from the more fragmented co-working segment.

Smartworks’ growth trajectory has been marked by disciplined financial management. The company was bootstrapped initially, securing its first institutional investment of $25 million from Singapore’s Keppel Land in late 2019. Between 2017 and 2024, Smartworks accumulated approximately $70 million across eight funding rounds, pursuing a measured expansion strategy that included delaying entry into high-cost markets like Mumbai. This conservative financial posture enabled the firm to navigate market volatilities, including challenges faced by global co-working giants.

The efficacy of this strategy became evident following its successful Rs 583-crore IPO in July 2025, which was subscribed nearly 14 times. In its first full fiscal year as a listed entity (FY26), Smartworks reported a 31% increase in revenue, reaching Rs 1,796 crore. Crucially, the company posted its first annual net profit of Rs 11 crore, a significant reversal from a Rs 63 crore loss in the preceding year. This financial turnaround was further underscored by a 75% growth in normalized EBITDA and a doubling of return on capital employed to 16%.

By the close of FY26, Smartworks had secured over Rs 5,200 crore in contracted future rentals and achieved a net-debt-negative position, having more than halved its gross debt since the IPO. The operational efficiency inherent in its large campus model, where costs are spread across thousands of employees, makes fully serviced seats highly cost-effective for enterprises. This structural advantage, combined with strategic expansion into markets like Singapore, positions Smartworks as a prime example of how specialized, scalable solutions can redefine the economics of commercial real estate for the enterprise segment.