Coronavirus pandemic | Co-working spaces offer rental discounts to retain customers

Companies providing co-working spaces are offering rental discounts for April, in a move to retain customers during the nationwide lockdown, according to a report by The Times of India.

India is currently in a 21-day nationwide lockdown till April 15 to help contain the spread of the novel coronavirus, or COVID-19.

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Only essential services are permitted during this period, which means that co-working spaces will be unused for most of April.

The companies are afraid of losing customers, who usually pay a monthly rental.

Moneycontrol could not independently verify the report.

WeWork India, a joint venture between WeWork and Embassy Group, will provide massive discounts to its clients, the report said, industry executives told The Times of India.

WeWork India CEO Karan Virwani has not yet responded to a request for comment by the publication.

“Whatever the period of lockdown, they have told their clients that they only need to pay 30  percent rent for that time. This has been done to ensure at least some steady cash flow, and to not lose clients,” a source told the paper.

Many companies said some clients plan to invoke the force majeure, or ‘Act of God’, clause in their agreements, the report added.

"Force Majeure" is the legal term for a clause typically invoked when a party to a contract seeks exemption from obligations due to uncontrollable or unforeseeable circumstances.

91springboard will not contest force majeure claims, Anand Vemuri said, as quoted by the paper.

The company has not issued invoices for March, and does not intend to do so for April as well, sources told The Times of India.

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