NZ Herald
  • Home
  • Latest news
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather forecasts

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
    • The Great NZ Road Trip
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
    • Cooking the Books
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • What the Actual
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / Property

RESEARCH: Coworking is breaking records

By True Commercial
NZ Herald·
11 May, 2018 05:00 PM5 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

Generator provides space for members to meet, work, eat and drink with a fully stocked cafe and bar available. Photo / Supplied

Generator provides space for members to meet, work, eat and drink with a fully stocked cafe and bar available. Photo / Supplied

Auckland's coworking scene continues to evolve, and rapidly, now representing the fastest growing occupier of office space in the city, says Lloyd Budd, Auckland commercial director for Bayleys Real Estate.

Speaking at the recent annual CoreNet Global NZ Symposium at Shed 10, Budd presented a selection of findings from the third annual Bayleys Research report on the coworking industry to New Zealand's leading office occupiers, landlords and suppliers.

Focusing on what's next in the coworking sector, Budd questioned some of the sector's leaders — including Ryan Wilson, from Generator; Lisa Bryan, B:Hive at Smales Farm; Jonathan Kearins, WeWork and Pierre Ferrandon, IWG — before an audience of 500 seminar attendees.

Budd says key trends coming through to the sector include the emergence of the corporate sector, which is now responsible for sustaining 30 per cent of leasing revenue coming from co-working space, and the forecast arrival of US-based coworking space provider WeWork in New Zealand by the end of next year.

What was once the domain of smaller businesses, techies, entrepreneurs, start-ups and creative companies looking to collaborate with like-minded people, share ideas, services and reduce rental costs, coworking has attracted many in the corporate sector who want to tap into the start-up culture and win new talent and new clients.

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

"And because of this industry-wide attraction, the sector continues to evolve into a powerhouse of office space absorption across Auckland," Budd says.

According to the 2018 Bayleys Research coworking survey, there were just three operators and less than 2000sq m of occupied office space in 2011, which has expanded into around 20 operators and almost 30,000sq m of space.

"Not only has the growth been exceptional over the past seven years, but the growth in the past year has broken through new records," says Budd.

Advertisement
Advertise with NZME.

The total amount of coworking space has grown by a further 25 per cent in the 12 months to April 2018 to 29,400sq m. And more growth is coming.

The coworking survey, which is the most comprehensive in the market, shows an additional 15,700sq m is also in the pipeline and due for completion over the next 12 months.

While growth across the sector is evident, there are some clear leaders emerging with the top three operators – Generator, BizDojo and B:Hive – controlling 71 per cent of the total space which continue to grow their offerings.

Budd also notes that the two biggest players in coworking globally, WeWork and IWG which own Regus and Spaces, are looking at their New Zealand options.

"Spaces, are due to open new offices on Karangahape Road soon. Meanwhile WeWork which is yet to arrive on our shores, is rumoured to be scouting locations for a potential 2019 opening".

"WeWork moving into the area would not be an unusual step given the Auckland evolution in coworking is following similar global trends."

The number of coworking spaces and members are growing at a solid clip, according to the latest Deskmag Global Coworking survey. Worldwide the number of coworking spaces is projected to increase by 22 per cent to 18,900 for calendar 2018; and members to increase by 33 per cent to 1,690,000.

The latest Bayleys Research survey reveals there has been a general consolidation in total member numbers to around 2900 from years of back-to-back growth.

Occupancy levels currently stand at around 74 per cent of total member capacity of 3500.

"Given present occupancy levels and the indicative pipeline of new available space, this should allow for the expected member number growth over the remainder of 2018," Budd says.

Advertisement
Advertise with NZME.

"With the increase in office space that is becoming available over 2019, we also expect operators will look to see what space is available once the bigger operators have moved to their new premises. This may leave behind new opportunities that the coworking operators can take advantage of. So 2019 will definitely be an interesting year for the sector's next steps in its life cycle here in Auckland."

One of the coworking sector's trends occurring overseas is highlighted in the Deskmagsurvey which shows tech operators looking to include bigger coworking spaces as well.

"Given the larger floorplate offerings, especially in the Precinct Properties Innovation precinct, we expect this trend to quickly eventuate locally as well."

Budd says that when it comes to cost for many businesses, coworking can be an easy one-stop real estate solution with flexibility at the heart of the operation.

"For a monthly fee, members can hire a work area, be it a hot desk, dedicated desk or enclosed office, depending on their needs. They get all the facilities of a modern office yet they don't have to commit to a lengthy lease".

According to Bayleys Research, monthly dedicated/flexi desk rates have recorded little change over the survey period and range from $499 to $1499 for the larger operators; and $400 to $900 for the smaller operators. Casual and flexi rates typically range between $150 to $499 per month.

Advertisement
Advertise with NZME.
Lloyd Budd, Bayleys
Lloyd Budd, Bayleys
Save

    Share this article

Latest from Property

Property

Couple bought 125-year-old church on a whim - put their bed next to the pulpit

12 May 09:11 PM
Premium
OpinionUpdated

Property Insider: Next steps for Seascape tower but what of Shundi's big Tāmaki plans?

12 May 09:00 PM
Property

Traitors NZ star selling her home to chase acting dream overseas

12 May 06:15 PM

“Not an invisible footprint”: Why technology supply chains need optimising

sponsored
Advertisement
Advertise with NZME.

Latest from Property

Couple bought 125-year-old church on a whim - put their bed next to the pulpit

Couple bought 125-year-old church on a whim - put their bed next to the pulpit

12 May 09:11 PM

“We would be driving past a church and Suzanne would go, ‘Stop, stop, stop.'"

Premium
Property Insider: Next steps for Seascape tower but what of Shundi's big Tāmaki plans?

Property Insider: Next steps for Seascape tower but what of Shundi's big Tāmaki plans?

12 May 09:00 PM
Traitors NZ star selling her home to chase  acting dream overseas

Traitors NZ star selling her home to chase acting dream overseas

12 May 06:15 PM
Rich-listers sell their family home for just $1.2m - well below CV

Rich-listers sell their family home for just $1.2m - well below CV

12 May 08:04 AM
Deposit scheme reduces risk, boosts trust – General Finance
sponsored

Deposit scheme reduces risk, boosts trust – General Finance

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • What the Actual
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven CarGuide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP