Latest Flex Office Market Insights: Australian Flexible Office Space Report - January 2024
The Rubberdesk Flexible Office Space Report examines actual flex office availability and pricing as well as trends in Australia.
With growing supply across most markets, our report covers flexible office availability and pricing across key markets in Australia.
The Flex Market experienced strong growth, driven by increased demand in Professional Services & Tech in the final quarter of 2023. As we enter the new year, the market remains healthy, with 6 new centres opened in the last quarter and 9 more set to open in the first quarter of 2024. With this expansion, we anticipate continued health for the sector in 2024.
Jim Groves, CEO
Despite the current economic environment, the national desk rate in Australia continued to show resilience with desk rates holding steady at $660 per desk in Q4.
Though national prices remained static, the rate conceals significant regional variations. For instance, desk rates in Sydney, a leading market in flexible office space fell 3% to $943. Meanwhile rates in Melbourne and North Sydney hit new highs of $728 and $625 per desk respectively. Canberra also saw a price increase of 2% to $510 per desk while Brisbane and Perth remained unchanged at $700 and $600 per desk. Like Sydney, rates in Adelaide fell from their peak of $650 per desk to $600 in Q4.
Nationally, desk rates for smaller offices with 15 or less desks saw prices increase marginally while rates for larger enterprise offices for teams of 20 or more people declined in Q430.
With the RBA forecasting below-average growth in the short term and a slower-than-anticipated decline in inflation, the 2024 economic outlook poses challenges and uncertainty for tenants that Flex Office space is ideally positioned to service.
Source: Rubberdesk January 2024
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.
What's New: 4 new offices opened in Q4 including Work Club Global, Miller Workspace and Urban Collective in North Sydney as well as Hub Australia at Martin Place in Sydney. February 2024 kicks off a big month with 4 new centres including two from The Work Project (Sydney @ Goublurn Street and North Sydney), The Great Room (Sydney), Signature (Parramatta), Work Club (Sydney @ Chifley Street) and The Commons (Sydney @York Street).
In addition, there were a number of flex operators closing doors starting with 3 from WeWork (Syndey, Pyrmont & North Sydney), Compass (Sydney ) and TEC (Sydney @ Australian Square).
Start your search for office space in Sydney today.
Source: Rubberdesk January 2024
As Melbourne businesses navigate their way back to the office, demand for flexible offices has increased and raised prices to $725 per desk, a 12% increase since the start of the year and 21% since hitting rock bottom in 2021. Despite a reduction in supply in December, operators have responded with new inventory across most office sizes ending the year with a total of 39,400 sqm.
While desk rates in Southbank remained unchanged at $750 per desk, many areas saw rates rise including 1.5% in the CBD to $728 per desk, 2% in Collingwood to $725 per desk and 12% in Docklands to $652 per desk. In fact, Docklands has been the biggest gainer all year, seeing a 30% increase in prices since June 2023.
Desk rates for offices of less than 10 staff which makes up 71% of all available offices remained unchanged at $700 per desk while larger offices with more breakout space led the market with a 6% increase to a median price of $765 per desk.
What's New: Melbourne saw 3 centres closing their doors Q4 2023 including Spaces (Collins Street), Regus (South Bank) and Compass Offices.
Search for office space in Melbourne.
Source: Rubberdesk January 2024
After falling throughout the year, supply of flexible office space got a well needed burst in Q4 thanks to the addition of new offices from Workspace365 and Space&Co. Desk rates, which rose sharply in Q2 have now settled at $600 per desk.
While desk rates in the Brisbane CBD and Fortitude Valley, which account for 83% of all available offices in the greater Brisbane areas, prices across South Brisbane saw prices rise 7% to $800 per desk due to dwindling supply. All other areas within the greater Brisbane like Milton and Bowen Hills remained unchanged from Q3 at $575 and $557 per desk respectively.
Desk rates for larger offices of 26 or more staff fell over 12% to $584 per desk on the back of a 26% increase in inventory across these larger enterprise offices. Meanwhile office space for smaller teams of 5-10 saw a 8% increase in desk rates to $600 per desk even though inventories increased 21%.
What's New: Outside of new spaces from Workspace365 and Space&Co, WOTSO is scheduled to open a new space in Toowoomba in February, 2024. And as part of their global restructuring, WeWork closed their Brisbane office in September.
Find the perfect office for your team in Brisbane.
Source: Rubberdesk January 2024
With supply falling 11% since the start of the year and 4% in Q4, Perth’s already tight commercial real estate market got even tighter falling to 5,165 sqm. Despite the downward trend, desk rates across the greater Perth market remain unchanged at $700 per desk.
Desk rates in the Perth CBD, which accounts for 70% of the available supply in the Perth region, remained unchanged at $750 per desk while rates in West Perth dropped 4% to $550 per desk. For businesses on a budget, there are options available at a desk rate below $600 per desk in Leederville, Subiaco and Burswood, though supply across larger offices is limited.
As a smaller market, 85% of all available spaces cater to teams 1-10 staff. 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 January 2024
Desk rates across the greater Adelaide market fell 5% for a second consecutive quarter to $600 per desk, despite a 26% rise in supply to 3,020 sqm.
With 73% of all available offices located in the Adelaide CBD, options elsewhere are limited, though there are a few options available in Dulwich and now Mawson Lakes with recently opened offices.
Desk rates for offices for teams of 1-4 rose 8% to $700 per desk due to demand while offices for teams of 5-10 staff can be found for $500 per desk.
As a smaller market with limited supply. Adelaide has a strong independent coworking scene with operators such as Spot Coworking, Business Hub, Servcorp, Regus, and Hub Australia.
What's New: IWG's Spaces is set to open a much needed new serviced office in Mawson Lakes in February 2024.
Search for office space in Adelaide.
Source: Rubberdesk January 2024
After a quiet second half to 2023, desk rates in greater Canberra saw a 2% increase to $510 per desk.
Though the Central Business District (CBD) in Canberra provides the most choice it comes at a premium of $600 per desk, up from $525 in Q3. Compare this to Symonston, Dickson and Phillip which continue to provide both value and options at a median rate of $450 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.
Canberra presents a good selection of 17 operators to choose from, including well-known names such as Work Club Global, WOTSO, Hub Australia, and Servcorp.
Search for the perfect office in Canberra.
Source: Rubberdesk January 2024
Select a city: Sydney | Melbourne | Brisbane | Perth | Adelaide | Canberra
Author: Tom Petryshen, VP Growth & Analytics
Rubberdesk is Australia’s flexible office marketplace with thousands of fully furnished serviced offices and coworking desks ready for you to move in and rent by the month or year. Our proprietary platform combined with industry insights from our office specialists helps you find the best office for your needs.
With a view across all available options, we simplify the process to create a bespoke shortlist, arrange tours and negotiate the best deals. All for free and without obligation.
As well as being the proud partner of Cadigal Rubberdesk provides Flex Powered by Rubberdesk for commercial agents across Australia.
Rubberdesk also operates in the UK and Ireland.
For further information, images, and interview requests, please contact Jim Groves at Rubberdesk:
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