Is an office just a bunch of walls and desks? Not according to an up-to-date working trend that is hitting all international markets, including Australia: The Flexible Office.
IN A POST PANDEMIC WORLD, where most of the working population set their offices at home, traditional office space is becoming almost obsolete and shifting to a new, more dynamic and effective workspace.
Flexible offices offer more than just a working space with a desk. Usually located in premium buildings in the CBD areas of large cities, like Sydney and Melbourne, these flex office spaces can accommodate tenant’s requests adapted to their needs and those of their employees, mostly looking for large meeting spaces and conference facilities where they can host big gatherings and town halls, as well as several private phone booths or smaller spaces to have video conferences and private conversations.
In addition, tenants are looking for locations close to public transport and in CBD buildings with high-end amenities onside (which they may or may not use), advanced technology, connectivity, 24/7 office access, and sustainable building features.
Asia-Pacific was the largest region in the serviced office market in 2023. According to CBRE, a global leader in commercial real estate services and investment, although the flexible office market peaked in Australia in mid-2020 at 3.1 per cent of stock, there are now signs of recovery after the pandemic, with the major east coast market growing by 2.1 per cent of the past 12 months to June 2023, leaving room for growth in the year ahead.
One of the key trends in the Australian flex market is that larger operators are becoming an important part of the mix, with the top 10 making up 88% of the market, still according to CBRE. Amy Lam from Compass Offices believes the growth of flexible office spaces in Australia reflects the global trend of post-pandemic office environment transformation, highlighting the modern workforce's demand for more flexible, efficient, and technologically advanced workplaces. Flexible offices usually offer a shorter period in their contracts, benefiting tenants looking for more flexibility with their leases.
Overall, the Australian flexible office market is set for growth in 2024 as businesses recognise the benefits of adaptable workspaces. The demand for flexible leases, high-end amenities, and advanced technology will solidify Australia's position in the global flexible office movement.
