Small office suites will likely see a surge post-pandemic as employees lean towards a more secure office space rather than open layouts.
Understandably, small office leases have dropped as many workers opt to work from home, but certain industries have used this time to seek out the best deals.
According to Cushman & Wakefield’s New South Wales head of metropolitan office leasing George Harb, the coworking model that was once in high demand could suffer.
“Smaller tenants, sub-300 square metres, were the main users of coworking space, and social distancing measures have put the coworking model under immense pressure, changing the way people view their workspace,” said Harb. “Some of the coworking sub-tenants may not continue to work from home once lockdown measures subside and are more likely to require their own office space either in the CBD or more affordable metropolitan areas.”
Two of the most sought-after small office locations for Cushman & Wakefield were North Sydney and Parramatta. Harb added that the rent prices between the CBD and suburbs made locations in these areas much more attractive to potential tenants.
Dan Walker, director-in-charge of Colliers International North Sydney, said that the area would greatly benefit from a boost in demand from SMEs who want their own spaces and to keep their employees safe and healthy.