Larger businesses are increasingly opting for co-working environments. At Office Hub, we have experienced this shift first-hand and have continued to enjoy significant double-digit growth since forming in 2013. Tellingly, our client base has also evolved from start-ups and growth-phase small businesses to 40 per cent of our enquiries today coming from corporate and enterprise. This isn’t likely to change back any time soon, with recent research from JLL, predicting 30 per cent of all office space will be classed as “flexible” by 2030. Not surprisingly, providers like Regus, Servcorp, WeWork, UCommune and Naked Hub are chasing these corporate audiences by offering plug-and-play managed workspaces to house teams of 50, 100 or even 200 people, alongside their options for individuals and small businesses. On the other side of the fence, another factor contributing to the rise of co-working is the fact that it’s much harder to lease conventional office space in today’s climate, especially considering more than 90 per cent of Australian businesses employ less than 20 people, so there isn’t the demand for big spaces. By breaking a large conventional floor space into smaller, flexible spaces with private offices, shared facilities, furniture, internet and electricity, owners have a much larger audience to market to. It’s without question the best solution for a landlord’s bottom line as the speed to lease the space becomes a matter of weeks, not months or years.
​Colliers suggests a positive outlook for commercial property in Australia , however , an expected boom in co - working and shared office models will put downward pressure on rental prices and unsettle the market , according to Office ##works Founder Grant Philipp . The complex and drawn out conventional business model will have headwinds , says Philipp , pointing to the greater flexibility , attractive , fast refits and more efficient use of space by shared office providers . He suggests Australian landlords could benefit from following institutional property groups in Asia that have altered their property codes to accommodate flexible workspace .