Market Snapshot
| Study Period: | 2018-2027 |
| Base Year: | 2021 |
| CAGR: | >4 % |
|
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Market Overview
The Australian co-working office spaces market is expected to register a CAGR of more than 4% during the forecast period.
The COVID-19 pandemic had accelerated the growth of co-working spaces in the country, as traditional workspaces faced challenges during the crisis. Many enterprises moved toward co-working spaces because of the affordable prices and flexibility in working space. Also, the co-working spaces ensure to provide a safe working environment.
Furthermore, the sector is driven by the increasing demand from freelancers, small- and medium-scale enterprises (SMEs), and startups. The sector provides top facilities at affordable prices, and large-scale enterprises were also adopting co-working spaces after realizing the benefits offered by the sector. Also, the increasing number of startups with high rate of investment flows resulted in the robust growth of the sector.
In 2022, Sydney is the focal location for the sector in the country, with more than 205 co-working spaces, followed by Melbourne with 138 available spaces and Perth and Adelaide with 16 and 15 available co-working spaces, respectively.
Scope of the Report
Co-working is an arrangement in which workers of different companies share an office space, allowing cost savings and convenience using common infrastructures. Furthermore, this report offers a complete analysis of the Australian co-working office spaces market, including market overview, market size estimation for key segments and emerging trends by segments, and market dynamics. The report also offers the impact of COVID-19 on the market. The Australian co-working office spaces market is segmented by type (flexible managed office and serviced office), application (information technology [IT and ITES], legal services, BFSI [banking, financial services, and insurance], consulting, and other services), end user (personal user, small-scale company, large-scale company, and other end users), and key cities (Sydney, Melbourne, and Perth). The report offers the market size and forecasts in value (USD billion) for all above segments.
| Type | |
| Flexible Managed Office | |
| Serviced Office |
| Application | |
| Information Technology (IT and ITES) | |
| Legal Services | |
| BFSI (Banking, Financial Services, and Insurance) | |
| Consulting | |
| Other Services |
| End User | |
| Personal User | |
| Small-scale Company | |
| Large-scale Company | |
| Other End Users |
| Key Cities | |
| Sydney | |
| Melbourne | |
| Perth |
Key Market Trends
Co-working Spaces are Experiencing Significant Growth
The co-working office spaces have been significantly growing over the years. In addition, Sydney and Melbourne were leading in this sector by offering a large number of co-working spaces in 2021. Meanwhile, Sydney remained a major location in the country, with most of the businesses moving to co-working and shared offices. It was followed by Melbourne, which is the second-largest co-working market in Australia, with shared offices attracting a wide range of tenants, including major corporates, government organizations, and startups.
Most freelancers, startups, and small- and medium-scale enterprises (SMEs) are adopting co-working spaces because they provide top features and facilities such as fast internet services, 24/7 access to office space, providing meeting rooms, furnished and unfurnished spaces, etc.
Furthermore, serviced offices (including creative and classic) contributed most of the share in the co-working office space sector. In Q1 2022, Canberra, Brisbane, and Adelaide were leading in the supply of serviced office spaces.
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Sydney is Witnessing Growth in the Sector
Sydney is the major location for the development of co-working spaces in the country. The market in Sydney is experiencing significant growth as many enterprises are moving toward co-working spaces to meet social distancing requirements, reduce space, and save costs.
Furthermore, to meet the rising demand in the sector, major players in the country were expanding their footprint in Sydney. For instance, major players like JustCo and WOTSO WorkSpace had sharp increases in their business expansions, with more than 20,000 square meters, to leverage the advantages of flexible space-as-a-service and decentralization. Despite these large-scale operations, independent co-working brands such as Workit Spaces and Work Club have developed growing co-work communities in Sydney.
Moreover, Sydney operates more than 205 co-working office spaces in the country, followed by Melbourne and Perth. In 2022, the average co-working floor space size offered in the city is more than 2250 square meters, the available desks are approximately 8300, and more than 45% of co-working spaces are in A-grade buildings, followed by 40% presence in B-grade buildings. In addition, the average monthly price per desk in Sydney is in the range of AUD 908 in 2022, followed by Adelaide and Perth.
Competitive Landscape
The Australian co-working office spaces market is fragmented, with both global and local players existing in the market. Also, many more are entering the market to fulfill the rapid demand for casual environment offices. The companies in the Australian co-working office spaces market are involved in several growth and expansion strategies, such as strategic partnerships, mergers, and acquisitions, to gain a competitive advantage. Some of the key players in the market include Hub Australia, JustCo, WeWork Management LLC, Spaces, and WOTSO Limited.
Major Players
Recent Developments
February 2022: WeWork (one of the leading providers of flexible shared workspaces for technology startups and services for other enterprises) expanded its strategic partnership with ARHT Media Inc. (the global leader in the development, production, and distribution of high-quality, low latency hologram, and digital content). This partnership enables the integration of ARHT Media’s technology into WeWork’s global events offering. In the first phase of the partnership, ARHT Media’s technology will be available across a total of 30 WeWork locations around the world. Furthermore, this technology will be implemented throughout the United States, Europe, Asia, Australia, and Canada.
August 2021: WeWork (one of the leading providers of flexible shared workspaces for technology startups and services for other enterprises) offered subsidized workspaces to Australian startups through a new community initiative to boost the tech sector post-pandemic. These spaces will be available in Sydney, Melbourne, Brisbane, and Perth.
Table of Contents
1. INTRODUCTION
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2. RESEARCH METHODOLOGY
2.1 Analysis Methodology
2.2 Research Phases
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
4.1 Current Market Scenario
4.2 Technological Trends
4.3 Industry Value Chain Analysis
4.4 Government Regulations and Initiatives
4.5 Insights into Co-working Startups in Australia
4.6 Market Dynamics
4.6.1 Market Drivers
4.6.2 Market Restraints
4.6.3 Market Opportunities
4.7 Porter's Five Forces Analysis
4.8 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 Type
5.1.1 Flexible Managed Office
5.1.2 Serviced Office
5.2 Application
5.2.1 Information Technology (IT and ITES)
5.2.2 Legal Services
5.2.3 BFSI (Banking, Financial Services, and Insurance)
5.2.4 Consulting
5.2.5 Other Services
5.3 End User
5.3.1 Personal User
5.3.2 Small-scale Company
5.3.3 Large-scale Company
5.3.4 Other End Users
5.4 Key Cities
5.4.1 Sydney
5.4.2 Melbourne
5.4.3 Perth
6. COMPETITIVE LANDSCAPE
6.1 Overview (Market Concentration Analysis and Major Players)
6.2 Company Profiles
6.2.1 WOTSO Limited
6.2.2 The Commons
6.2.3 The Office Space
6.2.4 WeWork Management LLC
6.2.5 Hub Australia
6.2.6 The Circle
6.2.7 JustCo
6.2.8 Workit Spaces
6.2.9 Work Club Global
6.2.10 Spaces
6.2.11 Switch
6.2.12 Coworking South Australia
6.2.13 workspace365 Pty Ltd
6.2.14 CreativeCubes.Co Pty Ltd
*List Not Exhaustive7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. APPENDIX
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Frequently Asked Questions
What is the study period of this market?
The Australia Co-working Office Spaces Market market is studied from 2018 - 2027.
What is the growth rate of Australia Co-working Office Spaces Market?
The Australia Co-working Office Spaces Market is growing at a CAGR of >4% over the next 5 years.
Who are the key players in Australia Co-working Office Spaces Market?
WOTSO Limited, Hub Australia, JustCo, Spaces, WeWork Management LLC are the major companies operating in Australia Co-working Office Spaces Market.
