Market Trends of Australia Co-working Office Spaces Industry
This section covers the major market trends shaping the Australia Co-working Office Spaces Market according to our research experts:
Co-working Spaces are Experiencing Significant Growth
The co-working office spaces have been significantly growing over the years. In addition, Sydney and Melbourne led this sector by offering many co-working spaces in the previous year. Meanwhile, Sydney remained a major location in the country, with most of the businesses moving to co-working and shared offices. It was followed by Melbourne, the second-largest co-working market in Australia, with shared offices attracting a wide range of tenants, including major corporates, government organizations, and startups.
Most freelancers, startups, and small- and medium-scale enterprises (SMEs) are adopting co-working spaces because they provide top features and facilities such as fast internet services, 24/7 access to office space, meeting rooms, and furnished and unfurnished spaces, etc.
Furthermore, serviced offices (including creative and classic) contributed most of the share in the co-working office space sector. In Q1 2022, Canberra, Brisbane, and Adelaide were leading in the supply of serviced office spaces.
Sydney is Witnessing Growth in the Sector
Sydney is the major location for the development of co-working spaces in the country. The market in Sydney is experiencing significant growth as many enterprises are moving toward co-working spaces to meet social distancing requirements, reduce space, and save costs.
Furthermore, to meet the rising demand in the sector, major players in the country were expanding their footprint in Sydney. For instance, major players like JustCo and WOTSO witnessed a sharp increase in their business expansions, with more than 20,000 square meters of office space added, to leverage the advantages of flexible space-as-a-service and decentralization. Despite these large-scale operations, independent co-working brands such as Workit Spaces and Work Club have developed growing co-work communities in Sydney.
Moreover, Sydney operates more than 205 co-working office spaces in the country, followed by Melbourne and Perth. In 2022, the average co-working floor space size offered in the city is more than 2,250 square meters, the available desks are approximately 8300, and more than 45% of co-working spaces are in A-grade buildings, followed by 40% presence in B-grade buildings. In addition, the average monthly price per desk in Sydney is in the range of AUD 908 (USD 609) in 2022.
