{"id":12693,"date":"2019-07-01T08:00:04","date_gmt":"2019-07-01T08:00:04","guid":{"rendered":"https:\/\/www.instantoffices.com\/blog\/?p=12693"},"modified":"2022-06-22T21:14:09","modified_gmt":"2022-06-22T21:14:09","slug":"coworking-down-under","status":"publish","type":"post","link":"https:\/\/www.instantoffices.com\/blog\/instant-offices-news\/coworking-down-under\/","title":{"rendered":"A Coworking Down Under Update"},"content":{"rendered":"

Tom Fleming, Director at The Instant Group, on who\u2019s who in the Australian flexible workspace market.\u00a0<\/strong><\/span><\/p>\n

Australia was one of the early adopters of coworking outside of the US, with spaces opening as early as 2006. However, its real growth and impact on the commercial property market has only truly been felt over the past 3-5 years.<\/p>\n

As demand has grown, the Australian market has seen a significant increase in operators \u2013 from coworking independents to recognised internationals – and the expansion and diversification of the traditional players.<\/p>\n

The Big Operators<\/span><\/strong><\/h2>\n

\"International<\/p>\n

International Workspace Group:<\/strong> The parent company of Regus & Spaces is a global flex space giant with over 3300 centres in 1100 cities, servicing 2.5M customers. In Australia, IWG has 79 spaces with plenty more in the pipeline under both identities. IWG has just launched its franchising business in the hope of securing sites in \u2018second tier\u2019 cities throughout Australia.<\/p>\n

\"Servcorp\"<\/p>\n

Servcorp:<\/strong> The ASX listed operator, started by Alf Moufarrige in 1978, now has 23 locations throughout Australia and over 160 locations worldwide.<\/p>\n

\"WeWork\"<\/p>\n

WeWork:<\/strong> The fastest-growing operator in the world, operating in over 600 cities worldwide, valued at $47bn and looking at a potential IPO. WeWork entered the Australian market in 2016 and now has 15 spaces across the country, with 2 new spaces announced in Sydney and Perth.<\/p>\n

\"Victory<\/p>\n

Victory Offices:<\/strong> The Melbourne-based flex operator currently has 19 sites across Australia, with a healthy pipeline of 14 additional sites due to open over the next 18 months. The company is chaired by former Victorian Premier Steve Bracks and has recently listed on the ASX.<\/p>\n

\"WOTSO<\/p>\n

\u00a0WOTSO Workspace:<\/strong> A fringe location specialist which has flown under the radar but boasts a portfolio of 13 spaces throughout Australia and a centre in both Kuala Lumpur and Singapore. WOTSO is a subsidiary of listed property fund, BlackWall.<\/p>\n

\"Executive<\/p>\n

The Executive Centre:<\/strong> A flex space giant in Asia, with 125 centres located across 30 cities. Founded in 1994, the flex space operator entered 5 new regions in 2018 and currently has 9 premium locations across Sydney, Melbourne, Brisbane and Perth.<\/p>\n

\"JustCo\"<\/p>\n

JustCo:<\/strong> Singapore’s largest coworking space has just launched in Australia through 4200sqm in Sydney\u2019s Pitt Street, which will be closely followed by additional space in Sydney and Melbourne. JustCo is founded by Kong Wan Sing, and backed by sovereign wealth fund GIC and property company Frasers.<\/p>\n

<\/h2>\n

The Aussie Independents<\/span><\/strong><\/h2>\n

\"Christie<\/p>\n

Christie Spaces:<\/strong> Founded in 1980, the privately-owned Christies has recently revamped its sites and now has six coworking spaces in Sydney<\/a>, Melbourne and Brisbane.<\/p>\n

\"WorkWork Club:<\/strong> The brainchild of founder Soren Trampedach, WorkClub is a hybrid premium business club\/coworking space in Melbourne<\/a>.<\/p>\n

\"HubHub Australia:<\/strong> Founded in 2011, Brad Krauskopf has grown Hub Australia to six sites across four cities, with a new space due to open at Sydney\u2019s Customs House in the coming months.<\/p>\n

\"NousNous House:<\/strong>\u00a0This operator has sites in Sydney, Melbourne, Brisbane and Canberra and has won multiple awards, including Australia\u2019s best places to work!<\/p>\n

\"CorporateCorporate House:<\/strong>\u00a0Currently has 9 sites across Brisbane, the Gold Coast and Ipswich, with expansion into NSW planned.<\/p>\n

\"WorkspaceWorkspace 365:<\/strong> Jointly run by Michael Benson and Brian Challen, combining 55 years of experience, Workspace365 has 12 locations across 3 cities.<\/p>\n

Recent Flexible Workspace Trends in Australia\u00a0<\/span><\/strong><\/h2>\n

Corporate Memberships<\/u><\/strong><\/h3>\n

With an increase in coworking supply in Australia, where is the demand coming from?<\/p>\n

As the coworking market has gained exposure over the past 3-5 years, the profile of the tenant taking the space has also evolved. What was once a product aimed purely at startups and freelancers is now an offering for some of the largest companies in Australia and across the globe.<\/p>\n

The table below highlights the increase in larger desk requirements between 2016 and 2018; a trend which is only continuing to grow.<\/p>\n

\"Demand<\/p>\n

Over the past 12 months, we\u2019ve seen companies such as IBM, Microsoft, Verizon, BHP, AMP, Bupa, NAB, TAL, LJ Hooker and many others set up shop within coworking spaces. This move away from conventional commercial property allows corporates the ability to contract and expand quickly, have flexible terms, efficiently utilise (and pay for) office space, use a wide range of facilities and services, broaden their reach amongst other coworking members and provide their employees with a community of other like-minded people.<\/p>\n

Beer Vs Bikes\u00a0<\/u><\/strong><\/h3>\n

As competition in the coworking market increases, operators need to continue to invest in the amenities and services that their spaces provide. But what do companies want?<\/p>\n

The Instant Group\u2019s recent 2019 amenities report highlights that the main amenities members want in a coworking space are:<\/p>\n