Flex Office Spaces Growth from CBDs to Suburbs: Here’s What to Know!
And before you say anything, this isn't just a short-term thing but a major change in how Australian companies work and where people want to be. If you own a business in Australia, work for one, or are interested in the future of work here, get ready to learn why this shift is happening and what it means.
Why Are Businesses Moving from City Centers to Suburbs?
Several reasons are making businesses shift from traditional city offices to suburban locations, such as:
- Rise of Remote Work: After the pandemic, we learned that people can work well from anywhere. Many Australian companies saw that big, central offices weren't always necessary or cost-effective. This opened the door to looking for easier and better office spots in suburban locations.
- Desire for Better Work-Life Balance: People want shorter commutes and more time outside of work. Long commutes and traffic are not popular. Suburbs, often closer to home, solve this issue.
- Cost Savings: Rent in city centres, especially big cities, is very high. Moving to the suburbs can lower rent costs. This money can then be used for other things like technology or training.
- Employee Preferences: Many people prefer suburbs for affordability, community, and green spaces. It makes sense for offices to move closer to where people live. This makes life easier and better fits with how people want to live. Suburbs are now becoming places to both live and work.
Why Are Suburbs Becoming Business Hotspots for Flex Spaces?
The appeal of suburban locations for flexible office spaces is more than just leaving the CBD. Instead, it's more about embracing new benefits that fit today's business and employee needs. We’ve covered some of the reasons below.
Access to Wider Talent Pools
One key benefit of suburban offices is reaching a wider talent pool. Businesses no longer need to only hire people willing to commute to the CBD. By having an office in a suburban hub, they can tap into local talent, making hiring easier and building a more diverse and involved team.
Reduced Commute Times
Being close to where employees live is a big draw, leading to shorter commute times. Imagine saving an hour or two on daily travel. This greatly improves quality of life, making employees happier and more productive. Reduced commute times also mean less travel stress, allowing employees to arrive at work feeling refreshed and ready.
Ample Parking and Less Traffic
Other advantages of suburban offices include the availability of parking and potentially less traffic. Parking is expensive and hard to find in many CBDs, and traffic is a constant issue. Suburban office parks often have plenty of parking, making it easier and more affordable for employees to drive if they choose.
Integration with Local Communities
Suburban flex spaces often blend well with local communities and amenities. This could mean easy access to local cafes, restaurants, gyms, and shops, creating a more complete and convenient work environment. Companies can also connect with other local businesses and engage with the community.
Catering to Suburban-Based Clients
Serving clients in the suburbs is a good idea. Being closer to their clients is a strategic advantage for many service businesses. It can improve client relationships and reduce travel time for everyone. This local approach can lead to stronger networks and more personalised service.
Australia’s Top Suburb Commercial Hotspots for Flex Offices
Australia's office market is very active, and the flex office spaces growth is very clear in certain suburban areas. We’ve compiled a list of the top suburb commercial hotspots for renting flexible workspaces.
Sydney
In Sydney, inner-west areas like Marrickville are becoming very popular. Marrickville is only 7 kilometres from the CBD and benefits from population growth, new infrastructure like the upcoming metro station, and significant changes. Its combination of an industrial past with new homes and businesses makes it appealing.
Furthermore, Revesby, about 20 kilometres from the CBD, is seeing more businesses move from inner Sydney because it is affordable and has good transport links along the South West/M4 Corridor.
Melbourne
Melbourne is also seeing big changes in its suburbs. East Melbourne and the East/Northeastern areas, especially around the University of Melbourne and St Vincent’s Hospital, are good for medium-rise office buildings. Also, the tech and start-up areas around Richmond and Cremorne continue to do well.
In Melbourne's West, Footscray and Sunshine are getting attention not just for homes but also for shops and flexible office/research places, helped by big investments in healthcare and better transport, like the airport rail link.
Brisbane
Brisbane's suburbs are also lively. Albion, just 5 kilometres from the CBD, is becoming a top place for light industrial properties with good chances for future changes. Its proximity to the CBD, port, and airport makes it ready for changes.
Woolloongabba, 2 kilometres from the CBD, has seen more development because of zoning changes and a government plan. Its nearness to a major hospital and the coming Cross River Rail station makes it a very wanted place for development.
Perth
In Perth, the northern suburbs like Two Rocks, Alkimos, and Eglinton, up to 60 kilometres from the CBD, are popular for homes, which then helps business growth and the need for flexible workspaces.
The southern suburbs, including Bibra Lake, Henderson, Naval Base, Cockburn, and Hope Valley, are fast becoming industrial areas, helped by the new West Port in Kwinana and big defence projects.
Adelaide
Adelaide is also seeing growth in its suburbs. Gillman, 12 kilometres northwest of the CBD, is a top industrial area with great access to transport, the Port of Adelaide, and the shipping terminal. Its proximity to new naval and defence places near the Osborne Naval Shipyard makes more companies want to rent there.
Thebarton, 2 kilometers northwest of the CBD, is an old business area undergoing changes. Because of zoning changes, many places can be rebuilt.
Benefits of Flex Workspaces in Suburban Areas
Businesses using flex office spaces in suburbs gain many advantages that improve their profits, employee happiness, and operational efficiency.
Flexible leases and space allow businesses to change size quickly, avoiding wasted space or trouble growing. Overhead costs are lower than traditional CBD leases. Rent, fit-out, furniture, utilities, and cleaning are often included in the flex space package, making budgeting easier.
Modern flex spaces offer great amenities like fast internet, meeting rooms, reception, and kitchens. Businesses get a premium office setup without the high costs. Networking with other local businesses is easier, leading to more collaboration and growth.
Shorter commutes and better workspaces make employees happier and more likely to stay, saving recruitment costs.
Impact on Commercial Real Estate
CBDs demand for traditional offices may drop as more businesses use hybrid work, leading to higher empty spaces and lower property values. Landlords need to offer flexible leases and better amenities.
Suburban areas see more demand for flex offices, leading to new buildings and upgrades of old ones. These areas become more lively with new shops and services, increasing property values. Landlords must understand that tenants want flexibility and good amenities. Those who adapt to flex spaces will do better.
What Businesses Need to Know?
Businesses thinking about suburban flex offices should consider a few things.
- First, know where employees live and their commute times to find the best location.
- Second, consider the work environment needed; for example, do you need open spaces or private offices?
- Third, research flex office providers well. Check their reputation, facilities, and services. Visiting sites helps.
- Fourth, compare costs to traditional leases, including all expenses. Flex spaces often save more than just rent.
- Finally, understand the lease terms and flexibility offered. Make sure the terms support your business’s needs. As flex office spaces grow, more options are available, so choose carefully.
Rent Flexible Spaces in Top Commercial Suburbs Today!
Flex office spaces growth from CBDs to suburbs signifies a major shift in Australian work culture. Driven by the desire for shorter commutes, better work-life balance, and cost savings, this trend benefits both businesses and employees.
Suburban flex spaces offer access to wider talent pools, reduced commute times, ample parking, and integration with local communities. This growth is reshaping commercial real estate, revitalising suburban centres, and providing businesses with flexible and cost-effective workspace solutions closer to where their employees live.
For businesses in Australia looking to navigate this exciting new landscape and find the perfect flexible office space to suit their evolving needs, Office Hub stands out as a reliable and authentic platform.
With a comprehensive understanding of the local market and a commitment to connecting businesses with ideal flexible workspace solutions, the platform is your go-to resource for making the most of Australia's suburban flex office revolution.
Contact us now to get started!
