Coworking Space Sydney

The Coworking Market in Sydney, NSW

Coworking spaces are well-established within Sydney's commercial real estate market, and the city is home to some of the largest coworking hubs in the country. According to a 2017 report, approximately 30% of all coworking spaces in Australia are in Sydney. To get an idea of the scale, some coworking venues take up 16 stories in prime CBD locations, and some multi-location operators can accommodate nearly 200 companies.

Despite the impressive figures, Sydney is a relatively young market, since the first coworking hub only appeared in the city in 2009. But growth did not take long to become a reality: since shared and flexible office space is considered one of the major disruptors in the global commercial real estate market, a business hub like Sydney was set to be at the forefront of the coworking scene and was soon the place where the country's first coworking hubs emerged.

Sydney Coworking - Not Just for Startups

Sydney corporates are no strangers to the concept of coworking, and many choose this form of office accommodation due to the cost savings, which can be 25% lower than conventional office space. Local coworking spaces also accommodate some of the country's most successful tech startups, including Pocketbook and Go Catch, which is hardly surprising considering that the city has Australia's strongest startup ecosystem. The city's spaces cater to this diverse tenant base, ranging from high-end hubs with an executive flair to more informal venues.

Coworking Operators in Sydney

Main operators include WeWork the (largest provider with 25% of the total), WOTSO, YourDesk, ServCorp, Gravity, Tank Stream Labs, Spaces, The Bays, Office Space, and Tyro.

Cost for Coworking Space in Sydney

Towards the end of 2018, average desk rates were around $700 / month, making Sydney one of Australia's priciest coworking locations. Space in fringe locations can be more than 20% cheaper than in the CBD, although prices may rise as demand for non-CBD locations keeps growing.

Current and Future Trends

The local market has experienced a decrease in average rental rates due to increased competition, this being especially noticeable since 2018. However, Sydney experienced the lowest decline of all major sub-markets. Demand is strong and keeps growing in the CBD, especially in George, Clarence, Castlereagh, Spring, Kent, and Pitt Streets. Other established hubs in both central and fringe locations include Pyrmont, Barangaroo, Mascot, North Sydney, Chatswood, and Parramatta.

Further growth will be the main theme in the near future. International operators are eyeing Sydney and will bring in additional options with state-of-the-art services and amenities. Large scale developments already taking place in high-demand locations like Surry Hills, one of the fastest-growing sub-markets and popular with creative and digital occupiers.

Another trend to note involves cooperation and partnership schemes between corporates or educational institutions and coworking operators, whether it is through sponsorship or by encouraging the use of shared workspace among their employees, as is the case of well-known hubs like Fishburners, Stone & Chalk, and LaunchPad. This will contribute to the expansion of the city's coworking market and help companies of all sizes embrace the benefits of this office accommodation option.