There has been significant growth of Flexible Workspace (whether it be ‘serviced’, ‘co-working’ or ‘incubator’ office space) across greater Brisbane over recent years. The total stock of flexible office space across Brisbane as at May 2017 was 78,597sqm. Based upon this figure Flexible Workspace across greater Brisbane represents 2.34 per cent of the total office market.
In comparison a similar figure has also been identified for Sydney representing 2 per cent of the market. A factor contributing to this may be the fact that Brisbane currently has a higher vacancy rate on offer compared to Sydney CBD. Consequently, companies like Regus and Corporate House are locking in space today (with the market favouring tenants) rather than the latter, to offset their running/setup costs with high incentives, lower rents, and generally favourable terms that are currently on offer. Seemingly the recent surge in Flexible Workspace operators committing to head leases in the market is based on their expectation of significant growth in demand.