What Distinguishes Flexible Workspace Operators’ Offerings?

September 17, 2019 | Commercial Real Estate

The Boom in Operators

Flexible workspace across Australia continues to show strong growth, particularly in Sydney. In 2019, flexible workspace covered 130,000sqm, having grown over 30% per annum since 2015. This makes up 2.8% of all available CBD office space. Global flexible workspace operators are very active in their search for sites to open in Sydney by 2021.

While flexible workspace initially attracted smaller firms and start-ups, larger companies are now being attracted to the area. This is for several reasons such as flexibility, no fit-out-costs, premium space, staff amenities and little to no make-good. More benefits of flexible workspace can be found here. 

The map below demonstrates the abundance of available options in the Sydney CBD:

Unlike other countries dominated by a few key players (Wework, Regus, The Executive Centre and Servcorp), there are over 25 flexible workspace operators in the Sydney CBD alone. This makes it difficult to investigate the multiple options without the help of our dedicated team.

In addition to the number of operators, this table shows the estimated space taken up by the largest flexible workspace operators in Sydney:

Due to the numerous options available, Tenant CS has categorised flexible workspace operators to simplify the entire selection process. Below are two examples from each category:

Traditional Corporate

The Traditional Corporate category resembles conventional office space. There are fewer premium amenities and services offered. Desks are often arranged into cubicles as well as shared workspaces, while there are few creative zones.

Servcorp

Servcorp has over 160 locations globally, with 8 sites in Sydney and 3 in Melbourne, and presents a more classic office environment. Office furnishings are more traditional with brown colour schemes and mahogany-like desks.  Servcorp does not offer modern perks such as gym memberships, business consulting or creative workshops which is often advertised by competing flexible workspace operators.

Consequently, the prices are lower for the basic services Servcorp offers. Hot Desk costs start from $299/month while Dedicated Desks start at $450/month.

Victory Offices

Victory Offices has 3 flexible workspace sites in Sydney and 8 in Melbourne. The offices are more useful to a conventional corporate environment. Despite its traditional look and feel, Victory Offices has the general benefits of flexible workspace, without the modern perks typical of other flexible workspace operators. 

Prices are available upon request to Victory Offices. 

Collective

The Collective category brings network benefits to member tenants. These operators typically offer many services, including business development coaching and heaps of other workshops. There are often group activities available and networking events.

Wework

Perhaps the most well-known flexible workspace operator in Australia, Wework has 10 sites in Sydney and 5 in Melbourne. Wework prides itself on its member network which tenants can use to connect with potential staff or clients. Wework’s focus on the startup space continues to attract investors and exciting business development opportunities. Offices at Wework have various seating plans, with many separate areas available to tenants.

Because Wework offers the perceived benefit of their member network and established processes, prices are generally at a premium compared to other flexible workspace operators.

Emerge

With 2 Sydney locations in Surry Hills and the CBD, Emerge is one of Sydney’s best flexible workspace spaces for freelance designers and other creative professions. Furnished private offices and open workspace options cater to likeminded people with an established network of creative individuals. Most tenants are advertising, marketing and design firms. 

At the King Street location, dedicated desks start from $700/month and private offices start from $2250/month.

At the Surry Hills location, hot desks start from $350/month, dedicated desks start from $500/month and private offices start from $1950/month.  

How we can help

Tenant CS works with over 15 flexible workspace operators across Australia, creating competition amongst flexible workspace operators and exploring the market to achieve the best deal for our clients. Contact us today to discover how we can negotiate a flexible workspace for you.

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