This article is from the Australian Property Journal archive
BARANGAROO has emerged as one of the most expensive flexible office locations in Australia, commanding desk rates around 80% higher than Melbourne. The latest data highlights the stark price gap between Sydney’s most in demand location and other major cities.
According to the latest data from Rubberdesk, the national median office rate is at $667 per desk per month, with growth mixed across the three largest capitals.
This is up only marginally from the around the same time last year, with the Q3 2023 Rubberdesk Flexible Office Space revealing the the national median desk rate at $660 per desk.
In the Sydney CBD, desk rates were up 7% to $1,000 per desk per month. This rate was even higher in more in demand locations such as Barangaroo where the rate was at $1,301 per desk.
Rates were down in Melbourne’s market, with a 2.4% to $725, as the city faces market-wide vacancy pressures (LINK).
While in Brisbane, supply is up 7% to 12,420sqm with demand still relatively balanced, and the average desk cost was $619.
Meanwhile the Rubberdesk report after a challenging year with a demand down paired with growing supply, the flexible office market is showing signs of a coming period of stabilisation.
“The flexible office sector has responded proactively to market conditions ” said Jim Groves, CEO and Cofounder at Rubberdesk.
“We see operators bring compelling offers, including access to third spaces, rent-free periods and space for extra team members to attract and retain tenants in this challenging environment.”
Across the market, operators are having to balance promotional strategies with operational sustainability, with high the high price of fit-outs and long lead times constraining openings.
“The current market presents a unique opportunity for businesses to secure favourable terms,” added Anna Mears, flex space specialist.
“While operators navigate these challenges, tenants benefit from unprecedented choice and flexibility in workspace solutions.”
Co-working and flexible workspace provider Wotso recently announced it will open its first Melbourne venue early next year, after purchasing a whole Melbourne CBD floor in the historic Bank House.
One of the key ways landlords can draw in tenants in through sub-500sqm fully fitted offices, particularly for those that offer all-inclusive pricing and one-year terms.
Looking forward, the sector will continue to focus on occupancy optimisation and ongoing growth against the current market conditions.
