Coworking companies continue to positively dominate Sydney’s small-office tenant market, and are predicted to absorb 60 per cent of new leases in the sub-market annually. The positive impact started in 2019 and is currently occupying 2.6 per cent of the CBD’s total office space.
The overshadowing of flexible offices is noted to have caused smaller spaces to take longer in finding leaseholders. For the record, sub-300-square-meter leases consist 10 per cent of Sydney CBD’s lease volume by size, making up nearly half of all leases in the city centre.
Tenants seeking for smaller spaces generally include finance and insurance companies, professional services firms and technology-based businesses. Smaller tenants are as well increasingly drawn to the high quality fitouts and various offers from coworking spaces, which is expected to take up an estimated 2.8 per cent of all the office space in the city centre by 2020.
An though office vacancy rate in the CBD fell from 4.1 per cent to 3.7 per cent in the first half of the year, flexible workspaces continue to compete in the market with 70 tenancies recorded.
Image and article source: https://www.commercialrealestate.com.au/news/why-coworking-companies-are-dominating-sydneys-small-office-market-865438/
Ray White’s top 10 listings for August: (Click on the address to view listing)
Level 4, 81 York Street SYDNEY
Suite 1101, 37 York Street SYDNEY
Level 5, 283 Clarence Street SYDNEY
Level 2, 36 Hickson Road SYDNEY
Suite 504, 46 Market Street SYDNEY
235 New South Head Road, Edgecliff SYDNEY
Level 11, 97-99 Bathurst Street SYDNEY
Level 2, 309 George Street SYDNEY
483 Riley Street, Surry Hills SYDNEY
Level 6, 23 O'Connell Street SYDNEY