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Businesses that embrace coworking spaces can cut costs by 25%

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coworking

The number of coworking spaces has also grown almost 300% since 2013.

Businesses that shun traditional office leases and set up in a coworking space can look forward to savings of 25%. Coworking platform Hub Australia compared the cost of a traditional office lease in the Sydney CBD with space at its new Sydney coworking location, Hub Hyde Park, which will be opening in early 2018, and found the savings.

Coworking spaces have gained popularity in recent years. So much so that the number of coworking spaces in Australia grew by 297% between 2013 and 2017. With coworking, businesses pay a fee for a desk or office space with equipment, utilities, cleaning and sometimes other perks, such as drinks and food, included in the price.

coworking

The idea has certainly taken off in the startup scene, with fintech hubs such as Stone & Chalk and Tyro and tech startup hub Fishburners offering collaborative spaces for innovative startups.

State governments are also recognising the benefits of these spaces, with the NSW Government opening a "supersized" startup hub in Sydney and the Victorian Labor Government announcing plans to establish a financial technology hub in Docklands.

Hub Australia CEO and founder Brad Krauskopf says that as office space tightens in CBDs across Australia, coworking will continue to become more popular.

"We've seen an increasing trend in businesses and corporate teams choosing coworking spaces not just for the culture benefits but also the cost savings," he said.

"By offering a full service for our members we’ve been able to take the issue of real estate out of the equation, so businesses can focus on what’s important such as growth, community and nurturing their talent."

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