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Why corporates are ditching traditional office space

Why corporates are ditching traditional office space

Coworking redefined

With the rapid growth in the coworking industry, the largest sector to make the switch to coworking is the Finance and Insurance industry. Corporates are ditching the traditional long-term leases of large office space and are enjoying the flexibility of coworking.
According to the CBRE Pacific Coworking Survey, the Finance and Insurance Sector are the largest occupiers of flexible office space accounting for 26% of survey participants. Deutsche Bank, HSBC, and Bank of America are among some of the big players taking advantage of revolution in the way we work and joining tech players like Google, Amazon and Uber already using Coworking Spaces.

We understand that financial, legal and professional services often need their own private offices where confidential calls can be taken and client anonymity maintained and Serviced Offices in Coworking Spaces offer just that. Perhaps for industries like these, the term "Coworking" should be refined to refer to:

Serviced Offices that offer privacy, ease of use, flexibility as well as cost effectiveness.

Deskmag's annual report predicts that by the end of 2019, there will be an estimated 2.2 million coworking members around the world. This astounding figure makes sense following the entrance of the likes of WeWork and the hundreds of other coworking operators both within Australia and across the globe. By getting a multi-billion dollar valuation, WeWork not only contributed to the disruption of the coworking industry, but raised a lot of awareness of this mode of renting and working.

Why do businesses rent flexibly?

Compared to owning, leasing and subleasing of commercial office space, renting flexibly offers a number of advantages, typically at the expense of a higher monthly rent:

  • Agile teams need the ability to scale up or down your team size without significant penalties or obligations. For growing businesses this is a big deal and allows them to keep their options open and scale relative to business demand.

  • Lean teams focus on getting down to business not managing infrastructure. A team without staff to manage facilities means the fit out, maintenance, technology and infrastructure as well as cleaning are all taken care of. Bliss.

  • Lower up front capital commitment - often with just two months prepaid. Much less than guarantees and three month bonds common with leases.

  • Licence agreements not leases. Typically less demanding, lower cost and lighter weight than a lease agreement, most operators have their own flavour of agreement. No two agreements or situations are the same, so it's always worth getting advice.

So, Whether you're from the legal industry or a digital agency, coworking makes it easy to find office space that suits your businesses needs.

Altitude Cowork New Space

The Best Corporate Offices Available Now:

Desks for 2 People

Sydney

With over 200 Offices available now across Sydney, there is an abundance of corporate offices ready for short or long term lease now! Find An Office in Sydney Here

Desks for 2 People

Melbourne

Melbourne has over 200 corporate offices available! Located in and around the CBD, there are plenty of options out there to suit you and your businesses needs. Melbourne Offices Available Now


Desks for 2 People

Brisbane

With around 100 offices available, Brisbane has office space perfect for corporates! With affordable prices, convenient locations, and flexible lease agreements there's guaranteed to be an office for you! Find An Office in Brisbane

Unsure of which coworking provider to go with?

Here at Rubberdesk, we have some of the best Coworking and Managed Office Operators in the world who list their space. We've been busy collecting all the details about each of them in one place - so you don't have to do any leg work.

Australian Coworking Operators

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