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Australia Flexible Office Space Market Size (2024 - 2029)

The Australian flexible office space market is anticipated to experience significant growth, driven by the expansion of major tech companies and the increasing demand for co-working spaces post-pandemic. As flexible working arrangements become more prevalent, there is a shift away from traditional city center offices to work-near-home options, enhancing work-life balance and attracting top talent. This trend is particularly evident in suburban areas, where the demand for flexible workspaces has surged. The market's expansion is further supported by the strategic openings of new office centers in key locations, catering to the evolving needs of businesses and employees.

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Market Size of Australia Flexible Office Space Industry

Australia Flexible Office Space Market Summary
Study Period 2021 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2021 - 2022
CAGR > 8.00 %
Market Concentration Low

Major Players

Australia Flexible Office Space Market Major Players

*Disclaimer: Major Players sorted in no particular order

Australia Flexible Office Space Market Analysis

During the time frame of the forecast, the Australian flexible office space market is expected to grow at a CAGR of more than 8%.

  • The growth of large tech companies in Australia is a key sign that flexible office spaces should be bought.Twitter, Apple, Amazon, and Atlassian are becoming buzzwords in the property world. These companies are taking up significant amounts of space in the leading Australian property markets. Many companies implemented business continuity plans, with post-COVID-19 options being considered and implemented. When considering a post-COVID-19 company plan, choosing flexible office premises and working hours is essential. Post-pandemic, co-working spaces will gain huge demand.
  • Since flexible working has become more common, people are less likely to work in the city center and more likely to look for work-near-home options. Employees save time and money on travel and have a better balance between work and life. Companies get an edge when it comes to attracting and keeping top talent while making CRE more efficient. This scenario is being played out across Melbourne, with demand for flexible workspace doubling in 2021 compared to 2020 in popular suburban regions such as Box Hill, Hawthorn, Heidelberg, and Richmond. After the recent openings of centers in Richmond and on St. Kilda Road late last year, a new site in Balaclava is planned to open in 2024, becoming their third city-fringe location.

Australia Flexible Office Space Industry Segmentation

Flexible office space is a type of workspace that allows employees to work in several locations and in different ways. In a flexible office space, workers can choose the part of the office that best fits the work they need to do at the time. This is different from most offices, which have fixed desk locations.

The flexible office market in Australia is divided into three sections: type (private offices, co-working spaces, and virtual offices), end user (IT and telecommunications, media and entertainment, retail and consumer goods, and other end users), and city (Sydney, Melbourne, Brisbane, Perth, and Canberra, as well as the rest of Australia).

The report offers market size and forecasts for Australia's flexible office market value (USD billion) for all the above segments. The report also covers the impact of COVID-19 on the market.

By Type
Private Offices
Co-working Spaces
Virtual Offices
By End User
IT and Telecommunications
Media and Entertainment
Retail and Consumer Goods
Other End-Users
By City
Sydney
Melbourne
Brisbane
Perth
Canberra
Rest of Australia
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Australia Flexible Office Space Market Size Summary

The Australian flexible office space market is poised for significant growth, driven by the increasing presence of large tech companies and the shift towards flexible working arrangements post-COVID-19. Major cities like Melbourne and Sydney are witnessing a surge in demand for co-working spaces as companies adapt to new business continuity plans that emphasize flexibility in office premises and working hours. This trend is further supported by the growing preference for work-near-home options, which offer employees better work-life balance and cost savings on commuting. The market is becoming more attractive to larger corporations, which are now seeking dedicated and secure private offices, while smaller companies have become more adept at remote working. The availability of larger floor plates and more affordable rates in Central Business Districts is making flexible workspaces a viable option for corporate firms, enhancing their ability to attract and retain top talent.

The flexible workspace market in Australia is highly fragmented, with a significant portion of supply coming from providers outside the top ten. Traditional landlords are increasingly entering the market, viewing flexible office space as a competitive strategy. This has led to partnerships with operators and the establishment of new co-working facilities. Major players in the market include Servcorp, Flexible Workspace Australia, Hub Australia, The Commons, and Tank Stream Labs. Despite market uncertainties, rental rates in key cities like Sydney, Melbourne, Brisbane, and Perth have remained stable or increased, indicating a flight to quality in the property market. The introduction of new premium spaces and the restoration of A-grade structures are contributing to this trend, with prime incentives and gross effective rents showing positive growth.

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Australia Flexible Office Space Market Size - Table of Contents

  1. 1. MARKET INSIGHTS AND DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

    3. 1.3 Market Restraints

    4. 1.4 Value Chain / Supply Chain Analysis

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Threat of New Entrants

      2. 1.5.2 Bargaining Power of Buyers/Consumers

      3. 1.5.3 Bargaining Power of Suppliers

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Government Regulations and Initiatives

    7. 1.7 Technological Trends

    8. 1.8 Insights into Interest Rate Regime for General Economy and Real Estate Lending

    9. 1.9 Insights on Office Rents

    10. 1.10 Insights on Office Space Planning

    11. 1.11 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 Private Offices

      2. 2.1.2 Co-working Spaces

      3. 2.1.3 Virtual Offices

    2. 2.2 By End User

      1. 2.2.1 IT and Telecommunications

      2. 2.2.2 Media and Entertainment

      3. 2.2.3 Retail and Consumer Goods

      4. 2.2.4 Other End-Users

    3. 2.3 By City

      1. 2.3.1 Sydney

      2. 2.3.2 Melbourne

      3. 2.3.3 Brisbane

      4. 2.3.4 Perth

      5. 2.3.5 Canberra

      6. 2.3.6 Rest of Australia

Australia Flexible Office Space Market Size FAQs

The Australia Flexible Office Space Market is projected to register a CAGR of greater than 8% during the forecast period (2024-2029)

Servcorp, Flexible Workspace Australia (FWA), Hub Australia, Tank Stream Labs and The Commons are the major companies operating in the Australia Flexible Office Space Market.

Australia Flexible Office Space Report Snapshots

Australia Flexible Office Space Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)