CO-WORKING

Co-working is massively under represented

Co-working is now well established in office markets with numbers of new spaces snowballing around the world. Having evolved beyond an offering for entrepreneurs and start-ups, its popularity is showing no sign of slowing, now appealing to a growing number of companies both large and small, who want more from their workplaces.

In Auckland, co-working is only in its infancy but already locally this type of occupancy is creating waves with corporate occupiers and property investors. Currently, there are approximately 25 flexible office spaces within Greater Auckland region with a total net lettable area of around 46,500sqm. In terms of market potential for growth and expansion, Auckland compares very favourably to other Asia Pacific gateway cities.

With a footprint of 35,000sqm, approximately 17 of the 25 Auckland co-working sites are within the CBD. Generator, a local operator owned by Precinct Properties currently has the largest footprint in the CBD, followed closely by IWG, whose brand include Regus, BizDojo and Spaces.

While the co-working sector continues to gain ground, demand for flexible space continues to outweigh supply with many tenants currently registered to wait lists.

WeWork’s planned entry to the Auckland market will look to relieve a percentage of the city’s unsatisfied demand, in a format that has made WeWork the worlds leading provider of this style of offering. It will also mean that 131 Queen Street will be the largest co-working asset in Auckland’s CBD.