Sydney and Melbourne lead surge in serviced offices amongst companies

Shared offices in Australia attract a wide range of tenants.

Shared offices in Australia attract a wide range of tenants. Photo: Patrick McLachlan

The serviced office and co-working space market is experiencing rapid growth in Australia, driven by the new circumstances and the constantly evolving dynamics of the current workforce in a post-pandemic world.

The global co-working spaces market size was estimated at around US$13.3 billion in 2022 and is expected to grow at a compound annual growth (CAGR) of 14.9% through 2030.

Home to Australia’s key businesses, Sydney and Melbourne lead this surge, with Sydney positioning itself as a major location with most of the companies within the country moving to flexible office solutions, followed by Melbourne, Australia’s biggest city.

Shared offices in Australia attract a wide range of tenants, from major companies to government organisations to small businesses and startups.

Serviced offices represented over 30% of the total flexible spaces in Sydney, in the first quarter of 2022. Melbourne’s serviced offices share was just above 38%, with Canberra taking the pole position with an impressive 65%.

The serviced offices market size in Australia is projected to increase over the next five years (source).

This upturn is anticipated to be particularly strong in urban centres where the demand of prestigious addresses combines with the demand for flexible lease terms and all-inclusive services.

To explain the growth of serviced offices, Amy Lam of Compass Offices explains, ‘Serviced offices in prime CBD locales offer flexible leasing options across a range of budgets, with minimal setup costs for companies.

This has made them increasingly attractive compared to conventional office spaces. They include on-site support, internet, and advanced IT and communications technologies, providing the flexibility and support that small to medium enterprises require’.

She continues, ‘These offices often feature additional amenities such as secretarial services, receptionists, and efficient mail and courier handling.

With fully furnished office spaces, extensive areas for larger meetings, private booths for video calls, and the facilitation of networking opportunities, they serve the diverse needs of employees in a professional business environment.

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