Coworking and the future of work

Brad Krauskopf, CEO & Founder PFA Master Class – October 2018

About Hub

A u s t r a l i a ’ s l a r g e s t p r i v a t e l y

o w n e d c o w o r k i n g o p e r a t o r .

T h e m a j o r i t y o f o u r c l i e n t s a r e

p r o f i t a b l e g r o w i n g c o m p a n i e s .

Accelerate your business

Love where you work

Creating a home for businesses to grow.

Live something bigger

T h e n u m b e r o f c o w o r k i n g s p a c e s i n A u s t r a l i a g r e w b y 2 9 7 % b e t w e e n 2 0 1 3 - 2 0 1 7 .

Coworking growth

5 7 7 17 30

44

78

126

189

256

309

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Number o f cowork i ng spaces

200,000

150,000

100,000

50,000

SQM

Source: Knight Frank

S p a c e o c c u p i e d b y f l e x i b l e w o r k s p a c e ( % o f t o t a l o f f i c e s t o c k )

2.8 2.4

5.8

2.3

0 0 0

2 2

0 0

2 2 3

3.9

8

2.9

8

1

9.7

2.5 2.6 1.6

4

17.6 17.6

Hong Kong Singapore Shanghai Beijing Chengdu Shenzhen Jakarta Manila Sydney Melbourne Mumbai Bangaluru Delhi NCR

2017 2018

Coworking growth

Source: Colliers

20-30%

Market take up

by f lexible workspace

in 2017.

+24

Months average

term.

Up from 12 months

in 2013.

Deals for 15 desks

or more.

Up from 21% in 2015.

91%

Of Asia’s top

occupiers

consider ing using

f lexible workspace.

48%

Coworking growth

Source: Colliers

B e t we e n 8 3 % a n d 8 9 % o f

b u s i n e s s e s b y n u mb e r

a c r o s s o u r ma jo r C B D ’s

e mp l o y 4 o r l e s s p e o p l e .

S M A L L & M E D I U M B U S I N E S S

C o r p o r a t e s a r e ma k i n g

f l e x i b l e wo r k s p a c e s a

c o r n e r s t o n e o f t h e i r r e a l

e s t a t e s t r a t e g i e s .

C O R P O R AT E D E M A N D

E v e n a t 1 5 % c o wo r k i n g

c o u l d t a k e u p 2 . 5 mi l s q m

o v e r t h e n e x t 1 2 y e a r s , o r

2 1 0 , 0 0 0 s q m p e r a n n u m.

3 0 % O F T O TA L S T O C K B Y 2 0 3 0 ?

Drivers of demand

LOCATION TRADITIONAL LEASE

600 sqm ’A’ Grade, no services

TRADITIONAL LEASE

600 sqm ’A’ Grade, allowing $100k for

cost of services

FULLY SERVICED

COWORKING FACILITY

CBD Location, Private Office

SYDNEY

(gross rent $1,100/sqm) $660,000 $760,000 $630,000

MELBOURNE

(gross rent $700/sqm) $420,000 $520,000 $450,000

BRISBANE

(gross rent $800/sqm) $480,000 $580,000 $420,000

E x a m p l e f o r a 5 0 p e r s o n r e q u i r e m e n t

The cost of coworking

13.6%

4.0%

3.3%

2.8%

2.0%

5.4%

3.8%

2.8%

2.3%

1.6%

Source: Knight Frank

From work ‘space’ to work ‘experience’

P a r a l l e l s a r e i n c r e a s i n g l y d r a w n

b e t w e e n c o w o r k i n g a n d t h e h o t e l

i n d u s t r y .

A m e n i t y a n d s e r v i c e a r e a k e y

d i f f e r e n t i a t o r i n t h e c o w o r k i n g

i n d u s t r y .

H u b , C o n v e n e a n d T h e O f f i c e G r o u p

d e s c r i b e t h e m s e l v e s a s h o s p i t a l i t y

c o m p a n i e s

Te c h n o l o g y m e a n s n o o n e n e e d s t o

c o m e t o a w o r k s p a c e , b u t e v e r y o n e

w a n t s t h e e x p e r i e n c e o f a g r e a t

w o r k p l a c e .

Future workforce • Employee pays for their

workplace • 20 minute cities • Driverless cars • Gamers • Creativity & EQ vs IQ in the age of

robots • GIG Economy/ freelancers take

over?

Love where you work

B r a d K r a u s k o p f

C E O & F o u n d e r

0 4 1 7 7 4 0 0 0 7

B r a d . k r a u s k o p f @ h u b a u s t r a l i a . c o m