This article is from the Australian Property Journal archive
AMSTERDAM-born co-working space operator Spaces will open locations at Jubilee Place and Riparian Plaza in the next two years as part of its expansion into Brisbane.
Spaces Riparian Plaza, developed by Bloomberg Incorporation Limited, will open its doors in March 2020. The offering will encompass 3,728 sqm across three floors in the iconic Brisbane landmark and, designed by renowned architect Harry Seidler.
Workers will have 360 degree views over the Story Bridge and the wider city through floor to ceiling windows.
Set to open in 2021, Spaces Jubilee Place, developed by JGL Properties and owned by Credit Suisse, is located in Fortitude Valley and will span 4,809 sqm across five floors, making it ones of the brand’s largest locations in Australia.
The site has been designed around the heritage-listed 19th century Jubilee Hotel.
“We are excited to introduce Spaces’ creative workspaces to Brisbane over the next two years, helping local businesses to think, create and collaborate,” Damien Sheehan, country head of IWG Australia, said.
IWG is the serviced offices company that operates Spaces, as well as flexible workspace brand Regus. Earlier this month, a Regus-commissioned report showed flexible office space would continue to grow as part of the ‘flex economy’ and contribute more than $11.5 billion to local Australian economies and US$254 billion (AU$371 billion) globally in the next decade.
JLL has estimated Brisbane will need to increase office stock by an estimated 48%, or 2.16 million sqm as it heads towards a population of three million by 2029. A Cushman & Wakefield report released in August said the co-working sector has at least 10 more years of rapid growth.
Spaces Riparian Plaza and Spaces Jubilee Place will mark the brand’s seventh and eighth locations in Australia since arriving in the market in 2015. Spaces has over 250 locations.
The news is a welcome change of pace for the industry, which has been reeling from poster child WeWork’s fall from grace. The US-based group reported a quarterly net loss of US$1.25 billion (A$1.84 billion), a week after white knight Softbank fast tracked US$1.5 billion to the company. Softbank is reportedly looking to lay off 30% the group’s workforce.
Spaces said the launch of the brand in Brisbane stems off the back of a reduction in local workspace rental rates, which has led to a shift towards co-working and an increase in the flexible office market locally.
“There is an increasing demand from corporates looking for this type of setup and we are seeing a great mix of business types from large corporates, to medium and small sizes companies,” Margot van der Poel, brand manager of Spaces ME & APAC, said.
Scott Collins, Director of Bloomberg Incorporation Limited, owner of Riparian Plaza, said accommodating Spaces on the top three floors of Riparian Plaza extends beyond simply securing another high-profile tenant.
“The additional amenity that such an operation brings to the property and the resulting collaborative offering available to our core tenants is important.
“Supplementing conventional leasing models with flexible and varied workplace options provides tenants an enhanced capability to navigate ever increasingly dynamic markets. A prudent combination of longer-term core leases and shorter more versatile accommodation options within the same property provides a valuable operational asset for tenants.”
