The findings from the CBRE Pacific Corporate Coworking Survey have clearly revealed an imminent shift in the portfolio space mix of some of Australia and New Zealand’s largest occupiers.
The future is flexible, with office portfolio’s expected to have a greater proportion of flexible workspace solutions. More than half of corporates surveyed (52%) said they expect to reduce their footprint of traditional leased space in just two years’ time. But this doesn’t necessarily imply they are planning to reduce their portfolio size with an almost equal amount at 50% saying they expect to increase their footprint in coworking space.
There is also a strong appetite for meeting/event space with 84% of occupiers saying they would choose to occupy a building that offered this, versus one that did not. Despite 100% of large corporate occupiers saying they intend to increase their use of coworking space in the next two years, only 32% of respondents in Australia would choose to be in a building with a coworking space provider in situ. So while demand for coworking is high, there are certain issues that may be affecting occupiers’ demand for the specific offering they are seeking and where it’s located. This was particularly highlighted by the differing drivers amongst industry sectors for using coworking. There is an opportunity here for more differentiated service offerings in the coworking space to suit these bespoke industry requirements.
While for many corporate occupiers, coworking may have been at first trial an opportunity to reduce costs, access some additional space or gain exposure to a more entrepreneurial culture, the offering is now evolving to provide a myriad of benefits many of which highlight the increasing need for flexibility and ability to adapt to change in an increasingly high-speed world.