Coworking Culture – Challenges and Opportunities for Office Landlords

Coworking relates to the use of space, which can be in the form of very short office leases ranging anywhere from between a day to a month and longer. Workers have the option to occupy and work in the space independently, collaboratively or in nominated teams. Australia has recorded the highest growth of coworking spaces in the world in the last 3 years. As of January 2017, there are 239 coworking spaces throughout Melbourne, Sydney and Brisbane; with a very rapid current growth rate, industry predicts approximately 1.2 million members globally would be using coworking space by the end of 2017. Many landlords are being challenged by this growing demand for flexible, scalable, collaborative spaces with short term leases. A desktop analysis of the top 12 coworking providers in Melbourne is undertaken. The findings identify two main challenges confronting landlords. Firstly the reliance on coworking operators and their survival with changing market conditions, and secondly, transforming traditional office spaces into engaging coworking vibrant hubs.