Studio 42 Workspaces • September 28, 2018
Our friends at Office Hub have released some interesting research on the state of flexible workspaces in Australia. The Australian Coworking Market Report 2017/18 revealed some interesting insights that tell us about the direction of the coworking industry in our country.
Private Offices vs Coworking
The Australian climate is moving towards flexible workspaces, even for large businesses and major corporations with a 105% rise in large businesses looking for flexible office space. However, Australian businesses still prefer the option for privacy with 70% of enquiries surveyed requesting private or serviced office spaces over coworking, virtual and sublet.
Who is Coworking?
Gen Y and Gen X make up the majority of coworkers aged 25-44 years of age. Of the enquiries surveyed, 52% of enquirers were male and 3.22 desks was the average workspace size. It makes sense then that anecdotally it is start ups, small businesses, freelancers and singular departments of larger organisations that are utilising coworking spaces.
As expected, demand for coworking is focused on the CBD, but there is also a difference in location based on profession. Professional services such as law and finance firms prefer the city while Fortitude Valley and Newstead have specific providers catering to creative and tech start-ups.
Those in the CBD seem to have office quality at the top of their priority list while those looking for coworking space in metro locations are interested in offices that provide a quick internet speed and natural light.
Cost and Availability
There has been a massive increase in the number of flexible workspace providers popping up in the market. There are 19% more providers operating and a 25% rise in listed workspaces. With more supply available to Australian businesses, most capital cities have seen a decrease in “price per desk” from previous years. Canberra was the only excepting, seeing a 39.97% increase in price per desk. In saying this, Brisbane has the cheapest average cost per desk across the major cities averaging $465 per desk, almost half the countries highest cost per desk of $858.
This year has seen a drastic increase in the amount of office leasing available. Supply is finally becoming level with demand. The people have spoken and conventional, expensive lock-in contracts are out, and flexible coworking spaces are in! The ever-changing society is becoming more flexible, and so must the coworking options that businesses provide.
If you want to talk to us about a flexible workspace, get in touch here.