New figures published for the first time in the Rubberdesk Flexible Work Space Market Report on Monday, show the impact that the pandemic has had on the coworking and flexible workspace industry. Since November 2019 there has been a 64% increase in vacancy of Australian flexible workspace, and list prices have reduced by up to 25% in some CBDs.
As might be expected, the increase in vacant office space has impacted prices in almost every market. The median monthly office price per person in the Sydney CBD has dropped 15% to $819, and in the Melbourne CBD it has fallen 20% to $603. North Sydney has seen a price drop by 25% to $497.
So what does this mean for businesses looking to explore their office space solutions?
Trend data indicates that prices could be near their lows and represent excellent value just when businesses are making workspace plans for when staff can work in person together again.
“This year we’ve seen more flex tenants keep their work spaces and give their staff a place to get together and collaborate when able. We also believe that prices are at their lowest and when pent up demand returns to the market the best work spaces will be snapped up very quickly.” said Mr Jim Groves, CEO of Rubberdesk.
The Instant Group’s 2021 Australia Market Report
The Instant Group’s 2021 Australia Market Report found that interest in flexible office space has recovered almost as quickly as it declined, with Australia currently 15% up on pre-pandemic levels. As companies respond to growing employee demands, new workplace models favour flexibility. Employees now have greater choice over how and where they work, with businesses improving staff retention and gaining access to a wider talent pool. And as the Australian workforce looks to return to the office, flexible space will continue to become the popular choice for businesses.
“Demand for workspace has quickly returned but buyers are looking for short-term options to rethink the very purpose of their workspace. It will make for a unique point of time in the history and function of the office itself.” Said Mr Sean Lynch, APAC Managing Director, The Instant Group.
Rubberdesk is Australia’s flexible office marketplace with thousands of fully furnished serviced offices and coworking desks ready to move in and rent by the month or year. Their proprietary platform combined with industry insights from Rubberdesk’s office specialists helps customers find the best office for their needs.
About The Instant Group
The Instant Group’s team advises on and delivers commercial real estate solutions which drive business agility, efficiency and resilience. All underpinned by their market data and breakthrough insights.
FLEXIBLE WORKSPACE AUSTRALIA
Flexible Workspace Australia is the peak body for coworking and flexible workspace providers and partners across all cities and regions of Australia.