Post on 21-May-2020
COWORKING BREAKS NEW RECORDS/2018
Auckland’s coworking scene continues to evolve, and rapidly. It is now the fastest growing occupier of office space in the city and we expect this trend to continue.
The Auckland evolution follows similar global trends where the number of coworking spaces and members are growing at a solid clip.
Worldwide the number of coworking spaces is projected to increase by 22% to 18,900 for calendar 2018, and members by 33% to 1,690,000 per the latest Deskmag Global Coworking survey. The survey also points to an emerging trend towards bigger coworking spaces.
Looking at the Auckland scene, the total amount of coworking space has grown by a further 25% to 29,400m2, according to the latest Bayleys Research survey in 2017. An additional 15,700m2 is also in the pipeline and due for completion over the next 12 months. The top 3 operators – Generator, BizDojo and B:Hive – control 71% of the total space and continue to grow their offerings.
The two biggest players in coworking globally (WeWork and IWG who own Regus and Spaces) are looking at New Zealand options. Spaces, are due to open new offices on Karangahape Road soon. Meanwhile WeWork are rumoured to be scouting locations with a potential 2019 opening.
The latest Bayleys Research survey showed that annually there has been a general consolidation in total member numbers to around 2,900 from years of back-to-back growth. Occupancy levels currently stand at around 74% of total member capacity of 3,500 indicating more space will be required to allow for the expected member number growth that will continue to grow over the remainder of 2018.
Monthly dedicated/flexi desk rates have recorded little change over the survey period and range from $499 to $1,499 for the larger operators and $400 to $900 for the smaller operators. Casual and flexi rates typically range between $150 to $499 per month.
Coworking Space Growth
35,00040,00045,00050,000
sqm
30,00025,00020,00015,00010,0005,000
2016 2017 2018*0
Source: Bayleys Research*includes existing + pipeline space
PipelineExisting
indicative Membership Rates
Source: Bayleys Research(1)smaller operators (800m2)
Average
MinimumMaximum
ATEED Other (1)ColabNZThe IceHouse
BizDojo B:HIVE
$ rate perflexi/dedicated
desk
$1,500
$1,000
$500
$Generator
$400
$650
$450
$900
$450
$640$750
$1,000
$499
$1,499
$499
$1,499
$1,200
$800
Third Annual Report
Breakdown by Operator
(1) smaller operators (800m2)*includes existing + pipeline space
16,000 sqm
14,000
12,000
10,000
8,000
6,000
4,000
0ATEEDSpaces Other (1)ColabNZThe Ice
HouseBizDojo B:HIVEGenerator
2,000
2016 2017 2018*
Source: Bayleys Research
AUCKLAND COWORKING TRENDS
New LynnGrey Lynn
KingslandEden Terrace
Newmarket
Sylvia Park
DevonportTakapunaTe Atatu Penninsula Albany
LOCATION OF AUCKLAND COWORKING OPERATORS
LEGEND
CBD coworking spaces Established space providers Metro coworking spaces
LICENSED UNDER THE REAA 2008
For more information contact
Ian LittleHead of Research & Consultingian.little@bayleys.co.nz027 315 6733
Chris MenziesHead of Corporate & Occupier Seviceschris.menzies@bayleys.co.nz021 875 490
Lloyd BuddDirector - Auckland Commercial & Industriallloyd.budd@bayleys.co.nz 021 079 8789
Bayleys is New Zealand’s leading full service real estate company with coworking specialists in:
CORPORATE AND OCCUPIER SERVICES
RESEARCH VALUATIONS LEASING