Flexible Office Space Report (Q2, 2025)

Sydney's Desk Rates Hold as Supply Expands 12%

Strong supply growth characterized Sydney's flexible office market in Q2 2025, with CBD rates maintaining stability at $1,000 per desk while available space expanded (+12% quarterly) to 33,775 sqm.

This expansion reflects operators introducing new offerings with extended 1-3 year terms, particularly targeting mid-sized business requirements seeking flexibility and amenities with privacy.

Enterprise segments drove most of the quarter's desk rate movement. Rates for the 16-25 desk segment rose (+8.3% to $1,100) alongside expanding supply, while desk rates for 26-50 desks spiked (+16% to $1,000) as new inventory entered this segment. These increases appear linked to enhanced amenities rather than demand pressures alone. Meanwhile, rates for 5-10 person offices increased (+4.5% to $1,045) with growing availability, while smaller 1-4 desk configurations faced downward pressure (-2.9% to $935) as space contracted.

Regionally, Sydney's suburbs experienced varying degrees of change. North Sydney, once the most cost effective alternative to the Sydney CBD, saw rates soar (+18% to $615) as available space dropped 18%. Desk rates in Parramatta fell (3.6% to $700) as supply nudged higher (+2.5%) while rates in Darlinghurst rose (+3.6% to $845 / desk). Finally, Surry Hills saw rates hold at $675 despite a large increase in availability (+20%).

Businesses considering Sydney locations may benefit from timing strategies, as premium mid-market offerings now provide enhanced amenities for companies seeking longer-term flexibility, while even with the recent rate hike, North Sydney still presents cost-effective solutions without sacrificing connectivity in Sydney's evolving flexible office landscape.

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Source: Rubberdesk Q2, 2025

Flex Supply Contracts 13% as Melbourne Rates Hold

Melbourne's flexible office market experienced selective pressures in Q2 2025, with Greater Melbourne rates edging up 0.6% to $700 per desk while available space fell 13% to 32,815 sqm. This tightening suggests strong occupancy across key segments, indicating resilient demand.

Like Sydney, performance varied across Melbourne's key commercial areas. The CBD core saw rates decline (-2.7% to $709) with substantial space contraction (-16%), while Cremorne saw rates surge (+35% to $846) as operators appear to have reconfigured supply from smaller 1-4 desk spaces to larger 5-10 desk formats. Richmond saw desk rates fall (-16% to $667) alongside falling supply, while Collingwood maintained competitive positioning at $542 with expanding availability.

Mid-sized team configurations experienced the quarter's most pronounced changes. The 26-50 desk segment saw rates increase sharply (+19% to $771 per desk) alongside a 22% drop in supply, indicating demand for these configurations may be outpacing available supply. Conversely, desk rates for offices with 11-15 desks faced upward pressure (-18% to $655) with availability growing (+18%), likely as existing operators added new supply to this segment. Smaller configurations maintained relative stability, with rates for 1-4 desks holding steady (-0.6% to $700) while space contracted (-20%).

Current conditions suggest businesses seeking mid-sized configurations should expect higher costs, while opportunities may exist in the 11-15 desk segment where increased supply appears to have created more favorable rate conditions for growing teams requiring moderate space expansion.

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Source: Rubberdesk Q2, 2025

Occupancy Rises Across Brisbane’s Flex Office Market

Available space contracted dramatically across Brisbane's flexible office market, with Greater Brisbane rates holding steady at $603 per desk while space fell by a quarter to 10,250 sqm in Q2 2025. This substantial reduction suggests strong occupancy across the market, indicating healthy demand.

The CBD maintained its market strength with rates holding at $629 despite substantial space reduction (-27%). Annual trends show solid rate growth (+5.5%), reinforcing the CBD's continued appeal. Bowen Hills emerged as a notable performer with rates rising (+5.3% to $715) as businesses migrated to this emerging precinct, while Fortitude Valley maintained competitive pricing at $500 with supply down 24%.

Office preferences showed clear patterns in the quarter's performance. Offices with The 11-15 desks experienced notable rate increases (+6.4% to $683) alongside reduced space capacity (-15%) as business takeup in this segment was strong. Annual trends reinforce this trend with rate growth of +14%, suggesting sustained appeal. Rates for 16-25 desks fell (-4.4% to $647) despite available space falling 13%, though annual comparisons reveal solid rate growth (+7.8%) as overall available space in this segment dropped 31%.

The dramatic contraction in available space indicates constrained availability may require businesses to act decisively. Bowen Hills presents compelling alternatives to peak CBD rates for businesses seeking quality positioning outside the traditional core.

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Source: Rubberdesk Q2, 2025

Desk Rates in Perth Climb 6% as Supply Tightens 22%

Q2 2025 saw Perth's flexible office market experience notable changes, with Greater Perth rates rising (+6.3% to $744 per desk) while available space contracted sharply (-22% to 5,490 sqm).

This performance suggests robust occupancy across the market, indicating underlying demand strength.

Smaller offices with 1-4 desks rose 5.4% to $738 alongside reduced space (-5.0%), while offices in the 5-10 desk segment surged (+14% to $744) with available space contracting 28%. Annual comparisons show 5-10 desk rates maintaining growth (+10%) despite reduced availability (-8.9%), reinforcing sustained appeal for smaller teams. Offices with The 11-15 desks held steady at $800 per desk with supply surging (+32%).

Geographic concentration remained pronounced, with the CBD maintaining stable rates at $749 despite a substantial drop in supply (-21% to 4,325 sqm). West Perth saw the quarter's largest increase, with rates rising (+23% to $500) as space contracted dramatically (-57%) due to strong occupancy in this value-positioned location though today’s rates are still down substantially from a year ago (-17%).

The 22% space reduction indicates severely constrained availability may favor immediate action. Small team segments should expect higher costs reflecting genuine demand strength, while West Perth offers compelling value despite recent rate appreciation for businesses seeking cost-effective CBD proximity.

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Source: Rubberdesk Q2, 2025

Adelaide Market Matures with New Supply

Adelaide's market saw the most notable price changes in Q2 2025, with Greater Adelaide rates rising significantly (+24% to $600) alongside continued space expansion (+7.5% to 3,920 sqm).

This rate appreciation reflects new premium facilities addressing previous market gaps, building on Q1's supply additions from operators like Tank Stream Labs and Innovation Factory.

The CBD continued growing, with rates holding steady (+0.8% to $600) alongside growing supply (+9.0% to 3,225 sqm). Annual trends reinforce this stability with flat rates but substantial space growth (+95%), indicating successful integration of new inventory. Suburban alternatives maintained competitive positioning: Mawson Lakes and Wayville at $398 per desk.

Enhanced inventory appears to have elevated market positioning across smaller team segments. Offices with 1-4 desks saw rates rise substantially (+24% to $542) with growing availability (+14%), while annual trends saw desk rates decline 9.7% alongside a spike in new supply (+40%). The 5-10 desk segment experienced similar dynamics with rates increasing (+12% to $600) amid available space growing 6.2%.

Adelaide's market appears to be maturing rapidly, with premium supply additions creating enhanced choice for businesses. Small team configurations benefit from improved amenities despite higher costs, while suburban locations continue offering value alternatives for cost-conscious businesses seeking professional workspace outside the CBD core.

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Source: Rubberdesk Q2, 2025

Canberra Maintains Stability Across Key Suburbs

Desk rates across Greater Canberra held steady at $500 per desk in Q2 2025 while available space fell 7.6% to 4,260 sqm.

This performance suggests healthy occupancy across the market, with annual trends showing a similar rate decline (-7.4%) alongside a -4.7% drop in availability, indicating continued adjustment from previous elevated levels.

Desk rates for smaller teams remained stable with offices with 1-4 and 5-10 desks holding rates steady at $500, though the 5-10 desk segment saw available space grow +5.2% while 1-4 person offices saw availability contracted 5.8%.

The CBD maintained steady rates at $577 despite a 10% reduction in supply, while annual trends show a modest rate decline of 8.4% with reduced availability (-15%). Suburban alternatives demonstrated resilience: Kingston showed space expansion (+42%) with stable rates of $540 per desk, while Belconnen, Dickson, and Phillip maintained competitive positioning with steady rates and availability.

Canberra's market appears to offer consistent value for businesses seeking flexible workspace, with suburban locations providing compelling alternatives to CBD pricing while maintaining professional amenities and accessibility for government and private sector requirements seeking stability.

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Source: Rubberdesk Q2, 2025