RESEARCH
TENANT demand for office space is back, as flexible office rates rise for the fifth consecutive quarter and operators bring new premium office spaces to market.
According to the latest Rubberdesk Flexible Office report, December saw a concurrent 6% year-over-year increase in the national median price in the sector.
Over the fourth quarter, the national price to rent a desk in a private office was up 2.2% to $646, resulting in the first full-year gain in 3 years.
Sydney has witnessed the strongest recovery with prices up 18% from a pandemic low of $812 per desk. After a quarterly increase of 6.1% to $955 per desk for a yearly increase of 11%.
While over the quarter, Perth saw the most significant growth, up 12.5% with a monthly media of $735 per desk.
“For the fifth consecutive quarter, office rates have risen as tenant demand picks up and operators bring new premium office spaces to market,”
Jim Groves, CEO at Rubberdesk.
“Tenants have been asking, and willing to pay for high-quality, turnkey offices with luxury breakout and meeting spaces, and it is these spaces that employees love to work and flourish in.”
Meanwhile demand was down in Melbourne, after a 1.8% drop over the quarter to $660 per desk, with Brisbane also dropping 8.3% to $642 per desk.
With the median office rate per person per month in Adelaide at $611, $540 in Canberra and $400 in Hobart.
The report also revealed there is 167,090sqm of available flexible office space in Australia, up 3% from the previous quarter.
“We expect to see more first-time Flex tenants, a continued flight to quality, and with that a rise in price in the most desirable locations,” said Groves.
“It is expected that the number of buildings that offer Flexible Space-as-a-Service will continue to grow as Landlords partner with Coworking Operators to revitalise their property portfolios.”