Flexible Office Market Shows Resilience as Operators Adjust to Shifting Demand

Wednesday, 7th May 2025 | Press

Sydney, Australia, 7 May: Australia's flexible office market is holding its ground despite economic headwinds, with the latest Rubberdesk data revealing a nuanced picture across our major cities in the first quarter of 2025.

Nationally, desk rates nudged up 1.2% to $660 per desk, while available space increased just slightly by 0.9% to 158,355 sqm – showing demand is largely keeping pace with supply. The market is still a bit softer than this time last year, with rates down 4.1% year-on-year.

Our capital cities varied considerably in Q1:

• Sydney's CBD is holding steady at $1,000 per desk despite a significant 10% jump in available space, while North Sydney saw rates ease back 4% to $522 per desk.
• Melbourne recorded a modest overall uptick (+0.6% to $704 per desk), though the CBD experienced a 3.3% dip.
• Brisbane maintained its $600 per desk rate with supply tightening slightly (-1.9%), while its CBD edged up 1.3% to $628 per desk.
• Perth held firm at $700 per desk despite absorbing a hefty 15% increase in supply, with CBD rates virtually unchanged.
• Adelaide was our standout performer with rates climbing 2.7% to $536 despite a massive 67% surge in available space following new market entries.
• Canberra kept steady overall at $500 per desk as supply increased 2.3%, though its CBD experienced an 8.4% drop in rates.

The real story this quarter is in the office size breakdown. While smaller suites (under 15 desks) remained stable, mid-sized configurations for 16-50 people showed real strength. The sweet spot for 16-25 desks saw rates jump 12.1% in Brisbane and 3.1% nationally, while the 26-50 desk category leapt 12.4% in Sydney and 6.0% across Australia. Larger suite rates (50+ desks) softened slightly on average.

"What we're seeing this quarter is a clear shift towards mid-sized spaces that accommodate 15 to 50 people," said Jim Groves, our CEO and Co-founder. "Brisbane, Sydney and Perth showed particularly strong demand in this segment. This isn't just about overflow space anymore – businesses are strategically using flexible offices for core teams, project hubs, and growth plans, demanding quality, productive environments."

This quarter's data shows that the flexible office market is adapting well to current conditions. While the headline story is stability, the variations across locations and office sizes highlight how flexible operators are continuing to adjust their spaces and desk rates for more mid-sized configurations, especially as Aussie businesses get smarter about using flexible workspace solutions.

Read the full report for more.

About Rubberdesk

Rubberdesk is Australia's go-to flexible office marketplace, connecting businesses with thousands of fully furnished serviced offices and coworking desks available to rent by the month or year. Our unique platform combines with expert insights from our office specialists to help companies of all sizes find their perfect match. We take the hassle out of office hunting by creating tailored shortlists, arranging inspections, and negotiating the best deals – all free and without obligation.