Spaces signs lease for 3,000sqm co-working premise at Raine Square
IWG, the parent company to co-working brands Spaces and Regus, leased levels one and two in Raine Square’s newly built glass commercial building and the top floor of heritage-listed building The Wentworth.
IWG was advised in the off-market transaction by Colliers International Director Occupier Services Theo Smyrniotis.
Spaces, which already has co-working and meeting spaces in Sydney and Melbourne, is building an international network of shared office space structured around short-term leases.
“As a late-night, seven-day retail, dining and entertaining precinct, Raine Square will also provide a unique backdrop to Spaces’ co-working concept,” Mr Smyrniotis said.
Founded in The Netherlands and acquired by IWG in 2015, Spaces offers an assortment of co-working areas and has retained a Scandinavian aesthetic to create warm and welcoming interiors in its workplaces.
At Raine Square, Spaces The Wentworth will have informal open-plan working spaces, a central hub, comfortable private offices, conference facilities, light-filled meeting rooms that will integrate the heritage components of The Wentworth with the modern glass box building.
Mr Smyrniotis said Spaces would offer businesses and individuals the option to grow and contract their office requirements and manage real estate costs in a more responsive way than with a long lease.
“The flexibility offered by co-working models like Spaces is now an influential component in global office markets,” he said.
“In Perth, where flexible working space is just six years old, it represents approximately 1.5 per cent of the CBD office market but is likely to see steady growth if it follows overseas trends.”
The CBD office market has an 18.5 per cent vacancy and while many tenants are locking in long-term leases at competitive prices, there is also good demand for short-term leases.
“Technology and workplace changes in the past decade have created a new generation of untethered employees who see co-working as a hybrid between working from home and a traditional office,” Mr Smyrniotis said.
Mr Smyrniotis said co-working providers were also building more durable businesses.
“When they first emerged, these sublet start-ups were pitched to individuals and small businesses on short-term leases but larger companies are now using them and signing on for longer leases,” he said.