Coworking demand is rising across Australia, with more flexible workspace operators expanding into suburbs and regional cities as hybrid work continues changing where people work, according to The Canberra Times.
A new report from Flexible Workspace Australia found flexible office space supply, occupancy, and pricing all increased through 2025. Coworking is now firmly established across the Australian office market, with growth increasingly coming from outside traditional CBD locations.
Suburban And Regional Expansion Picks Up
Operators are opening more locations closer to where people live, particularly in suburban and regional areas.
Demand for local coworking hubs continues growing as workers look for alternatives to long commutes into city centers.
Landlords are also adding coworking space to office buildings more frequently. The report found landlord allocation to flexible workspace has doubled over the past three years.
Pricing remains strong as well. Desk rates in Sydney’s CBD can reach around AUD $1,000 per person monthly, while suburban locations remain considerably cheaper.
Larger Companies Increase Flexible Office Use
The report found coworking users now extend well beyond freelancers and startups. Corporations account for roughly one-third of tenants across Australian flexible workspaces.
Major operators including Hub Australia report growing demand from established companies using flexible offices for distributed teams and hybrid schedules.
In Sydney, flexible workspace now makes up more than half of all five-to-10-person office suites and over three-quarters of one-to-four-person offices, according to the report.
Hybrid Work Keeps Demand Rising
Operators say hybrid work patterns continue driving demand for smaller offices and flexible memberships.
Businesses are increasingly combining central headquarters with coworking locations closer to employees’ homes. The report also notes growing demand for premium workspace offerings as companies seek flexibility without committing to long-term leases.
