Australia Flexible Office Space Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The Australia Flexible Office Market is Segmented by 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, and Rest of Australia). The report offers market size and forecast for the market in value (USD billion) for all the above segments.

Australia Flexible Office Space Market Size

Australia Flexible Office Space Market Summary
share button
Study Period 2020- 2028
Base Year For Estimation 2022
Forecast Data Period 2023 - 2028
Historical Data Period 2018 - 2021
CAGR > 8.00 %
Market Concentration Low

Major Players

Australia Flexible Office Space Market Major Players

*Disclaimer: Major Players sorted in no particular order


Need a report that reflects how COVID-19 has impacted this market and its growth?

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 Market Trends

This section covers the major market trends shaping the Australia Flexible Office Space Market according to our research experts:

Demand for Larger Spaces driving the market

In the coming years, all major cities in Australia are expected to see massive development of flexible working space.Companies are more interested in acquiring dedicated and secure private offices for one to 100 employees.While remote working will supplement future workplace methods, it will not completely replace them. Large corporations, in particular, still require a central headquarters to strengthen their brand and culture. In Q1 2021, 18% of all flex space inquiries in Australia were for 10+ workstations, while demand for 1-2-person offices fell by 14% since Q1 2020.

In the last two years, there has been a shift toward larger companies using flexible space, while smaller companies have gotten better at working from home. Large floor plates are now available from a number of flexible workspace providers. This makes it easier for corporate firms to use flex space, which was hard to find in the past. Also, businesses can take advantage of cheaper flex workstation rates in Central Business District (CBD) areas, which lets them get high-quality space in a central location for less money. The increased provision of larger spaces and floor plates within the flexible market and relatively lower rates are proving to be advantageous for companies looking to occupy agile workspace.

Australia Flexible Office Space Market: Transaction Size Split, in %, by number of desks, Australia, Q4 2020 and Q1 2021

The demand for CBD (Central Business District) offices increasing which boosting the market

According to Source, despite market uncertainty, face rents in Sydney, Melbourne, Brisbane, and Perth were constant or higher in Q3, indicating new and higher quality property coming online. While increased incentives across the country are limiting future effective rental growth, net absorption within better grade supply and significant pre-commitments indicate that the flight to quality is still on.

In the Sydney CBD, premier face rentals increased by almost 2% in the third quarter to average USD 925 sqm, owing to the opening of new premium space, such as Quay Quarter Tower, and the restoration of A-grade structures. In the face of rising vacancies, prime incentives remained strong at 34%. As a result, gross effective rents increased by roughly 2% during the quarter, representing a 4.8% year-on-year increase.

While inquiry levels in the Melbourne CBD office market were up year on year, many larger clients opted for shorter-term extensions. Prime incentives are stabilizing at 39%, but are around 2% lower than in 2021. Prime net effective rents continued to average USD 410 sqm in Q3, a 5.3% rise year on year. Gross face rentals in all office classes in Brisbane CBD increased in Q3. Higher incentives have mostly compensated for this, with prime incentives currently averaging 42%. This resulted in prime gross effective rental increase of 0.6% in the third quarter to USD 460 sqm, and 3.1% year to date.

Australia Flexible Office Space Market: Average net face rent of prime office CBD real estate, in USD per square meter, by state, Q3 2022, Australia

Australia Flexible Office Space Industry Overview

The flexible workspace market in Australia is already very fragmented, with 80% of the supply coming from providers outside of the top ten. This wide range of products is getting bigger as the number of traditional landlords who offer flex is quickly growing. The epidemic has transformed their perspective regarding flex, and they now consider it a strategy to stay competitive. Several landlords have partnered with operators, including Hub Australia, Ucommune, and The Work Project, but an increasing number are entering the market on their own. The Loft at South Yarra was just opened by Goldfields Group.

Some of the major players in the market include Servcorp, Flexible Workspace Australia (FWA), Hub Australia, The Commons, and Tank Stream Labs.

Australia Flexible Office Space Market Leaders

  1. Servcorp

  2. Flexible Workspace Australia (FWA)

  3. Hub Australia

  4. Tank Stream Labs

  5. The Commons

*Disclaimer: Major Players sorted in no particular order

Australia Flexible Office Space Market Concentration

Australia Flexible Office Space Market News

January, 2023: A cohort of 62 budding purpose-driven businesses, ranging from government-backed battery recycling schemes to ADHD-tailored mental health services, has been selected to be part of Hub Australia's Flexi-Impact Program, which provides 12-month membership access to co-working spaces in five capital cities. The initiative, which is now in its fifth year, gives all selected firms a membership at one of Hub Australia's co-working facilities in Melbourne, Sydney, Brisbane, Canberra, or Adelaide.

May 20, 2022: The scale-up hub has officially opened with 4,000 square meters of office space, with an additional 7,000 square meters set to open by the end of the year. TSL presently has three co-working locations in Sydney and one in Perth, with the Haymarket hub becoming the fourth. The new Tank Stream Labs scale-up hub is at 24 Campbell Street, Haymarket.

Australia Flexible Office Space Market Report - Table of Contents


    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Value Chain / Supply Chain Analysis

    5. 4.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.5.1 Threat of New Entrants

      2. 4.5.2 Bargaining Power of Buyers/Consumers

      3. 4.5.3 Bargaining Power of Suppliers

      4. 4.5.4 Threat of Substitute Products

      5. 4.5.5 Intensity of Competitive Rivalry

    6. 4.6 Government Regulations and Initiatives

    7. 4.7 Technological Trends

    8. 4.8 Insights into Interest Rate Regime for General Economy and Real Estate Lending

    9. 4.9 Insights on Office Rents

    10. 4.10 Insights on Office Space Planning

    11. 4.11 Impact of COVID-19 on the Market


    1. 5.1 By Type

      1. 5.1.1 Private Offices

      2. 5.1.2 Co-working Spaces

      3. 5.1.3 Virtual Offices

    2. 5.2 By End User

      1. 5.2.1 IT and Telecommunications

      2. 5.2.2 Media and Entertainment

      3. 5.2.3 Retail and Consumer Goods

      4. 5.2.4 Other End-Users

    3. 5.3 By City

      1. 5.3.1 Sydney

      2. 5.3.2 Melbourne

      3. 5.3.3 Brisbane

      4. 5.3.4 Perth

      5. 5.3.5 Canberra

      6. 5.3.6 Rest of Australia


    1. 6.1 Market Concentration Overview

    2. 6.2 Company Profiles

      1. 6.2.1 Hub Australia

      2. 6.2.2 Servcorp

      3. 6.2.3 Flexible Workspace Australia (FWA)

      4. 6.2.4 IWG PLC

      5. 6.2.5 DeskSpace

      6. 6.2.6 interoffice Australia

      7. 6.2.7 WeWork

      8. 6.2.8 workspace 365 Australia

      9. 6.2.9 Rubberdesk

      10. 6.2.10 JustCo*

    3. *List Not Exhaustive

  8. 8. APPENDIX

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
Rest of Australia

Report scope can be customized per your requirements. Click here.

You can also purchase parts of this report. Do you want to check out a section wise price list?

Australia Flexible Office Space Market Research FAQs

The Australia Flexible Office Space Market is projected to register a CAGR of greater than 8% during the forecast period (2023-2028).

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 Industry Report

Statistics for the 2023 Australia flexible office space market market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Australia flexible office space market analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.

80% of our clients seek made-to-order reports. How do you want us to tailor yours?

Please enter a valid email id!

Please enter a valid message!