Local co-working pioneer, Hub Australia, says the benefits extend to business’ bottom line as well, revealing the cost of co-working can be twenty-five percent lower than that of a traditional office lease.
Hub Australia (who has a presence in Sydney, Melbourne and Adelaide) has compared a traditional office lease in Sydney CBD with space at its newest Sydney co-working location, Hub Hyde Park, which opens early 2018.
The comparison takes into account the leasing of the physical space as well as common services such as utilities, cleaning, amenity and a receptionist1. The number of co-working spaces in Australia grew by 297 percent between 2013-20172 and this strong growth has no signs of slowing as growing businesses are drawn towards the flexibility co-working offers, allowing businesses to scale up and down quickly.
Hub Australia CEO and Founder, Brad Krauskopf, says as the office market in CBDs across Australia tightens, co-working will continue to become more popular. “We’ve seen an increasing trend in businesses and corporate teams choosing co-working 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 nurturing their talent”.
Early 2019 will also see changes to global accounting lease standards, with companies that lease assets having to recognise these on the balance sheets. Some co-working spaces lease agreements may be exempt from this, providing an attractive leasing solution to businesses.
However you define it, and whichever way you look at the equation, co-working spaces are booming business and the race in Australia has only just begun.
1 Additional services sourced from average market rates – Sydney 2017
2 Commercial Office Lease Prices Sydney – Sourced from Knight Frank report ‘Culture Clash: Flexible Workspace, co-working and the Future’ - August 2017