Coworking spaces have become the epitome of the modern workplace, offering flexibility, progressive design and community.
Local coworking pioneer, Hub Australia, says the benefits extend to businesses bottom lines as well. Hub has revealed the cost of coworking can be up to twenty-five percent lower than traditional office lease.
Hub Australia has compared a traditional office lease in Sydney CBD with space at its newest Sydney coworking location, Hub Hyde Park, which opened in May 2018. The comparison takes into account the leasing of the physical space as well as average utilities and common essential services such as cleaning, amenities, and a receptionist¹.
The number of coworking spaces in Australia grew by 297% between 2013 and 2017, and this strong growth has no signs of slowing as growing businesses are drawn towards the flexibility coworking offers, allowing businesses to scale up and down quickly.
“The current Sydney leasing market is extremely challenging for occupiers. Vacancies are heading towards historic lows, leading to hefty rental hikes and smaller incentives, the combination of which places additional pressure on business margins.
“Coworking facilities provide a valuable alternative to a traditional lease and with the additional benefit of cost savings and flexibility of term, this is something which businesses are considering more seriously than ever before.”
-Knight Frank Head of Occupier Solutions, John Preece.
Hub Australia CEO and Founder, Brad Krauskopf, says as the office market in CBDs across Australia tightens, coworking will continue to become more popular.
“We’ve seen an increasing trend in businesses and corporate teams choosing coworking spaces not just for the culture benefits but also the cost savings. By offering a full service for our members we’ve been able to take the issue of real estate out of the equation, so businesses can focus on what’s important such as growth, community and nurture their talent”.
Early 2019 also saw changes to global accounting lease standards, with companies that lease assets having to recognise these on the balance sheets. Some coworking spaces lease agreements may be exempt from this, providing an attractive leasing solution to businesses.