The Current State of Co‑Working Spaces in Australia

In the years following the COVID‑19 pandemic, Australia’s workplace landscape has shifted dramatically. Hybrid work patterns, evolving corporate strategies, and shifting employee expectations have reshaped how and where people work — and co‑working spaces have been at the centre of this transformation. But the big question today is: Are co‑working spaces in Australia thriving or fading into irrelevance? The answer is nuanced: co‑working isn’t dying, it’s evolving and growing, but in a different form than before.

Post‑Pandemic Resilience and Revival

After early pandemic closures and uncertainty, the co‑working sector in Australia has staged a resilient comeback, with coworking spaces Adelaide, Melbourne and Sydney, in particular, experiencing increasing demand as businesses seek more flexible office solutions. The majority of operators are seeing increased revenue and profitability in recent years, with many forecasting continued growth. This recovery reflects broader global trends in flexible work solutions where businesses and workers alike are rethinking the role of the traditional office. Rather than dying out, co‑working spaces have become an integral component of workplace choice—especially as hybrid work strategies remain in flux.

Market Growth and Expansion

Strong Growth Metrics

Market research consistently projects strong growth for the co‑working sector in Australia over the next decade. Various sources estimate that the co‑working market may grow at double‑digit compound annual growth rates (CAGR) through to the early 2030s. These figures tell a consistent story: demand for co‑working and flexible offices is growing rather than shrinking.

Growing Footprint Across Australia

The expansion isn’t limited to major cities. Operators are increasingly locating in suburban and regional centres, responding to distributed work preferences and rising commuter costs. This geographic diversification suggests co‑working is not just surviving in big cities—it’s becoming more accessible and relevant to a wider professional base.

Evolving Customer Base and Uses

From Freelancers to Corporates

Initially associated with freelancers, startups, and small businesses, co‑working spaces are now attracting a much broader array of users. SMEs continue to be core clients, but larger corporations are increasingly tapping flexible spaces as part of their workforce strategies. Yet, many employees still choose co‑working memberships out of their own pocket, rather than having employers cover the cost—indicating that for many professionals, the benefit lies in flexibility, reduced commuting, and better work–life balance.

New Work Models Driving Demand

The ongoing popularity of hybrid work models continues to fuel interest in co‑working spaces. Despite some debate over how broadly hybrid work will persist, numerous professionals still report splitting time between offices and remote work. As remote or hybrid arrangements remain embedded in employment practices, co‑working spaces serve as a third option—a professional environment closer to where people live.

Hybrid‑Flex and New Workspace Formats

A significant shift in the industry is the rise of “Hybrid‑Flex” formats, which blend co‑working desks, private offices, enterprise suites, and flexible leasing in one. This hybrid model appeals to a wider range of tenants—from solo professionals seeking occasional desk space to larger teams needing scalable workspace without long leases. Operators are also innovating with adaptive layouts that enable tenants to scale space with business needs.

Challenges and Market Realities

Despite positive indicators, the co‑working industry faces challenges:

Economic and Cost Pressures

Operators note economic uncertainty, rising operating costs, and high occupancy rates as ongoing concerns. These factors could temper expansion or lead to more competitive pricing environments.

Competition with Home and Corporate Offices

While growth is strong, the sector does not exist in a vacuum. Working from home remains attractive for many, and some corporations are tightening return‑to‑office policies or scaling back hybrid arrangements, which could influence demand patterns.

Shift in Tenant Expectations

Modern users expect more than a desk—they want amenity‑rich environments with wellness spaces, community events, and networking opportunities. Operators that fail to deliver these experiences may struggle to attract and retain members in a competitive landscape.

The Future: Maturing, Not Declining

The evidence clearly points to an industry that isn’t dying—it’s maturing and diversifying. Growth in co‑working is not uniform, and it’s no longer just about urban communal tables where freelancers gather. Instead, the sector is becoming an essential part of a broader flexible office ecosystem that includes hybrid‑flex, private suites, suburban hubs, and enterprise solutions.

Operators are experimenting with diverse revenue models, integrating co‑working with childcare, health, retail, and community-focused offerings. The co‑working industry’s future in Australia is likely to involve:

• Continued growth in suburban and regional areas
• Adoption by corporates as part of hybrid workplace strategies
• Higher amenity and experience‑based offerings
• Flexible lease models that balance security with adaptability
• Growing integration into commercial real estate portfolios

Conclusion: A Sector on the Rise

Far from dying out, co‑working spaces in Australia are entering a next stage of growth and sophistication. The post‑pandemic world has reshaped how Australians work, and flexible office space has become a strategic tool for businesses and professionals alike. While challenges remain, the trend is upward—driven by hybrid work, evolving tenant needs, regional expansion, and innovative workspace formats. Growth is both quantitative in market size and qualitative in how spaces are used and valued, signifying that co‑working is not just surviving, but thriving in new forms.