Rubberdesk Australia's 2021 Flexible Office Market Report
The report highlights 64% rise in flexible office vacancy caused by Covid and the light at the end of the tunnel.
Thursday, 23rd September 2021 | Press
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 76% increase in vacancy of Australian flexible workspace, and list prices have reduced by up to 25% in some CBDs.
There is good news, 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. Based on data from the flex work space broker Rubberdesk, which maintains real-time availability and pricing for thousands of offices around Australia, the report is the first of its kind, as other commercial vacancy reports don’t include space occupied by coworking operators. It aggregates flex work space vacancy and price data to provide detailed market analytics that show how the pandemic has affected the market.
There is currently 174,235sqm of vacant flexible workspace available across Australia, a net increase of 68,000 sqm since November 2019, which for the most part is the result of Covid lockdowns. The fastest and largest net increase of ~18,500 sqm was observed in the Sydney CBD over the six months to September 2020.
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.
“Over the first year of the pandemic only 20% of all five year direct leases expired, whereas all coworking tenancy agreements expired. While this has given Coworking operators a headache, it has presented a huge benefit and opportunity to flex tenants to adjust their work space needs.” said Mr Jim Groves, CEO of Rubberdesk.
Flexible workspace is the term given to coworking spaces and managed offices. They provide a variety of services and can be fully fitted turnkey solutions or customised to requirements. Flexible workspaces are typically rented on six-month or one-year terms, much shorter than traditional direct leases and with lower upfront capital commitments.
One characteristic of flexible workspace is the relatively short-term nature of rental agreements between tenant and operator. Typically, terms are one year and rolling, although depending on requirements can be more flexible. Compared to traditional five-year direct leases, the shorter terms give tenants greater flexibility.
“This year we’ve seen more flex tenants keep their workspaces 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 workspaces will be snapped up very quickly.” said Jim Groves.
“Over the coming years, as more direct leases come to the end of their term and tenants look to renew, we expect more businesses will include a greater flexible component into their workspace strategy. For the flex workspace operators who have been hit hardest by the pandemic, there’s finally some light at the end of the tunnel” said Mr Groves.
Rubberdesk is the marketplace for flexible workspace and has over 3,700 available to rent in Australia and over 7,000 workspaces in UK and Ireland. As the only place tenants can find and compare every available flex office and see up-to-date availability and pricing, Rubberdesk is unique in the broking service it offers. There are currently over 100 companies operating flexible working spaces in Australia. They range from single to multi-site and multinational operators. Sites offer a range of spaces and services to companies, from a single office to an entire building as a managed service.
According to Jim Groves, Rubberdesk demand-side tenant clients include ASX listed companies and multinational organisations looking for turnkey flexible workspace of all sizes.
Download the report today
Read the full report here: Rubberdesk 2021 Flex Market Report
About Rubberdesk
Rubberdesk is Australia’s flexible office marketplace with thousands of fully furnished serviced offices and coworking desks ready for you to move in and rent by the month or year.
Our proprietary platform combined with industry insights from our office specialists helps you find the best office for your needs. With a view across all available options, we simplify the process to create a bespoke shortlist, arrange tours and negotiate the best deals. All for free and without obligation.
With Rubberdesk it’s easy to find, tour and rent the perfect office space on terms that work for your business. We’re backed up by awesome industry partners and a fantastic customer service team to make your journey to finding the right office fast and enjoyable.
As well as being the proud partner of Cadigal, Rubberdesk also exclusively powers flexible workspace for Commercial Real Estate.
Rubberdesk also operates in the UK and Ireland .
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