A rapid rise of flexible workspace solutions in the co-working sector has swept Australia in recent years.
Australia currently has the seventh largest presence of co-working operators globally with 253 listed operators, reveals CBRE’s Pacific Corporate Co-working Survey.
The report reveals more than half of corporate occupiers across Australia and New Zealand, which ranked 35th in the world with 62 listed operators, plan to reduce their footprint of traditional leased office space, with a push towards flexible workplace solutions.
CBRE outlines the APAC region is mooted for rapid growth in the co-working sector in the next five years, with China to become the largest market by 2022.
Despite growing demand for flexible solutions, only 32 per cent of tenants in Australia would choose to share a building with a co-working operator, highlighting concerns occupiers have around building tenant profile.
CBRE’s Nicole Fitzgerald said the findings highlight key opportunities in the market for operators and landlords to provide greater diversification in the co-working sector of industry groups.
“Today, co-working in Australia has a brand problem for large corporates,” Fitzgerald said.
“It is too strongly associated with a traditional start-up setup with bean bags and ping pong tables.
“Larger corporates want the flexibility but need a more sophisticated and brand-aligned experience in an environment that enables and supports fast-paced innovation and positive disruption.”