Sydney’s Flexible Office Rents Continue To Drop
Sydney’s flexible workspace rent has fallen by about 12% in the past year as supply has rapidly grown in the city, causing firms to cut their rates.
According to The Instant Group, rent dropped to $725 a month from between $800 and $850.
“The main factor is that there’s been an increase in supply over the past 12 months,” said Tom Fleming, director at The Instant Group. “New operators have entered the market and existing operators have expanded their sites, so competition for market share has increased and prices have dropped as a result.”
This data does not take into account sites that are expected to open in the next 12 months from larger operators such as Singapore-based JustCo, WeWork, Hub Australia, and IWG.
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The research also noted that there is an increase of hybrid spaces that combine serviced offices and coworking spaces, climbing by 28% in the past 12 months.
John Preece, chief property officer at Hub Australia, said that companies slashing their rates is no surprise as demand continues to outweigh supply.
“However, there are many new spaces opening through 2019, and early 2020, and some of those operators do adopt a strategy of discounting rates for new sites to achieve capacity as soon as possible,” said Preece.
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