Australian Flexible Office Space Report September 2023

Sydney CBD - Rates Fall 1% for First Time in 6 Quarters

Despite a year-over-year increase in desk rates across Sydney, the market has finally begun to show signs of price weariness falling 1% to $975 per desk. As demand slowed further in Q3, supply increased by 7% with a mix of new subleases and traditional flex space added across the Rubberdesk platform.

While prices within the Sydney CBD remained relatively unchanged from the previous quarter, suburbs outside the city center like Parramatta fell 12% to $725 per desk while Manly dropped 14% to $600 per desk as new supply was added. Despite premium prices within the Sydney CBD, businesses can find more economical options in Darlinghurst, Surry Hills, and North Sydney with rates of $869, $797, and $514 per desk respectively.

Offices for mid-sized teams of 5 to 25 staff remained over $1000 per desk but came under some price pressure for the first time in 2023, falling 3% to $1018 per desk. On the other hand, larger offices for 50 or more people fell 16% to $836 as demand dropped and operators began reconfiguring their available space for smaller spaces.

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Source: Rubberdesk September 2023

Melbourne CBD - Desk Rates Rise 4% to Lead Aussie Market

Despite subdued demand and an increase in vacancy rates across commercial office towers to 15%, desk rates across Melbourne's CDB rose 4.3% to $725 per desk as supply rose 3% to 38,660 sqm.

While desk rates fell by 3.4% and 1% in Melbourne's more expensive suburbs of Richmond and Cremorne to $800 and $792 per month respectively, Outside the CBD, Docklands saw the highest price increases, rising 15% to $580 per desk, however, it remains the most economical suburb to rent office space in the city. Collingwood and Southbank also single digit increases of 9% and 7% to $710 and $750 per desk.

Desk rates for offices of less than 10 staff saw an average price drop of 4.5%, while mid-sized offices for teams of 11-15 and 16-25 were up by 8% to a median price of $800 per desk. Larger offices for teams of 26 or more remained even at a median rate of $697 per desk per month.

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Source: Rubberdesk September 2023

Greater Brisbane - Rates Fall 1% as Demands Slides

Though rates across the greater Brisbane area rose quickly at the start of Q3, they fell just as fast to $600 per desk as rate increases outstripped demand. Surprisingly, inventory fell again to 12,050 sqm.

While desk rates in the Brisbane CBD fell 13.4%, prices across other suburbs like Bowen Hills saw a small increase of 2% to $557 per desk. All other areas within the greater Brisbane like Fortitude Valley and South Brisbane remained unchanged from Q2 at $750 and $527 per desk respectively.

Smaller offices for 1-4 people, saw the largest decrease, falling 16% from $717 per desk to $600 while desk rates for 26 or more staff rose 22% to a median price of $667 per desk on the back of a 37% decrease in these larger enterprise offices.

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Source: Rubberdesk September 2023

Perth: Rates Remain Unchanged as Inventory Dips 12%

With a tight commercial real estate market, desk rates for flexible office space in Perth remained unchanged at $700 per desk. Though supply dropped by 11%, softer demand wasn't enough to move the needle on price.

Although desk rates outside the Perth CBD are on average $100 less than those found in the CBD, these locations only make up 29% of the available space and provide limited options for businesses looking for a serviced office with all the amenities.

As a smaller market, 87% of all available spaces cater to teams of 10 or fewer. Rates for 1-4-person offices fell 5% to $700 per desk while offices for teams of 5-10 people fell 7% to $650 per desk.

Start your search for office space in Perth today.

Source: Rubberdesk September 2023

Adelaide: Desk Rates Cool 2.5% QoQ

Desk rates across the greater Adelaide market fell 2.5%, resulting in the first quarterly decrease in the past year to $634 per desk. Supply increased by 2% to 695 vacant workstations.

78% of all available offices are located in the Adelaide CBD though there are a few options available in Eastwood, Seaton, and Mawson Lakes.

With smaller offices for teams of 1-10 making up 86% of all available spaces, businesses will find a median rate of $563 to be a bit more palpable to the budget while offices for larger teams of 50 or more staff attract a much higher premium starting at $1,070 per desk.

As a smaller market with limited supply. Adelaide has a strong independent coworking scene with operators such as Spot Coworking, Business Hub, Mache, Wilkin Group, and The Innovation Factory.

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Source: Rubberdesk September 2023

Canberra: Available Flex Space Unchanged

After sharp price swings in early 2023, the desk rates in greater Canberra have returned to their long-term rate of $500 per desk per month.

Though there are savings to be had in suburban areas such as Symonston, Phillip, and Dickson at a median rate of $400 per desk options are limited. The Central Business District (CBD) on the other hand provides twice the amount of choice but comes at a premium of $525 per desk.

With 85% of the available space focused on smaller teams of 1-10 people, options for larger teams with over 15 staff are extremely limited. The Canberra market is best suited for smaller teams.

Despite limited options, Canberra still presents a reasonable selection of 17 operators to choose from, including well-known names such as Work Club Global, WOTSO, Hub Australia, and Servcorp.

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Source: Rubberdesk September 2023

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