Co-working is no longer just about a desk. With work-from-home here to stay, flexible workspaces are juicing up their offering.
Enter through a train carriage and be transported to a world of whimsy, complete with ambient lighting, trees, bean bags and a light plane suspended from the ceiling.
It’s not an art installation, but a shared workspace hidden inside a former warehouse in Melbourne’s hip Brunswick.
Under Sydney Harbour Bridge, another vision of co-working is taking shape. Here, industrial roots give way to bespoke luxury, while the onsite cafe – housed in a shipping container once used to conceal drugs – now deals in caffeine.
Work Inc’s expanding co-working space under the Sydney Harbour Pridge. Picture: Supplied
Demand for flexible space is surging as businesses navigate economic uncertainty, changing workplace habits and employment laws, according to REA Group senior economist Anne Flaherty.
“Co-working” was also the top keyword in buy and lease searches over the past six months on realcommercial.com.au, signalling a shift in 2026 real estate demand.
Over the six months ending May, 47% of those searching for “co-working” were specifically looking to buy, indicating businesses are increasingly seeing co-working as a viable business model and use for commercial properties.
Co-working also allows businesses to expand or contract their footprint as needed, unlike traditional office leases where they are locked into multi-year terms, Ms Flaherty says.
And recent federal changes removing negative gearing for established residential property might also be pushing investors to explore commercial instead.
O3 founder and Harvard graduate Luca Yang has established co-working spaces in Melbourne’s Brunswick and Southbank, and Sydney’s Newtown, with a fourth Sydney location planned. The business has about 2000 members nationally.
Yang was inspired to cater to a student niche after his work in education entrepreneurship taught him students lacked motivation and were lonely when studying.
His 24-hour “study cafe” concept is designed to make study and work feel enjoyable. O3 Southbank has a “Harry Potter-esque” aesthetic, while Brunswick channels Studio Ghibli vibes.
“The last thing we want to do is to design a co-working space that looks like an office,” he says.
Fun touches, including the train carriage and suspended plane, were sourced from Facebook Marketplace.
“All these things that seem very unnecessary and extra to other companies are soulful for us,” he says. “That’s precisely why it’s worth doing.”
The resourcefulness is also partly because “we’re kind of broke”.
“We really need to make things work by being scrappy. This giant Brunswick space would probably be the cost of half a Starbucks.”
From $10 a week, Yang says the edgier youth-friendly design also aims to “democratise” co-working for students, otherwise priced out of usual co-working spaces.
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By contrast, Work inc offers a “high-end show-off space” for its 600 members who work from six conjoined century-old warehouses under the arch of Sydney Harbour Bridge.
Glass, soaring concrete walls and exposed steel combine to house co-workers, who include high-net worth individuals and employees from industries from IT to architecture and charities.
The warehouses retain original heritage features, with emphasis on open air and natural light.
“We’ve just built within it. It’s all steel and glass, and it looks pretty cool,” founder Mark Davidson says.
“I wanted to dazzle people with what is fundamentally good architecture.”
Opening in 2016, the space has expanded six times after Davidson discovered demand for flexible office space while working from the site.
By handling everything from internet and cleaning to catering and concierge services, the business positions itself more like a boutique hotel than a traditional office.
“They want that whole back of house service. We even have a concierge, so if you need something for dinner, or a bottle of wine, we’ll get it for you,” he says.
“The employee loves being there because they get all those bells and whistles.”
Clean lines and warm tones in Work Inc’s space. Picture: Supplied
In a novel addition, members grab coffee at an onsite cafe built from a shipping container seized in a major drug bust.
Mostly, users want a place they can show their clients, investors and bankers. “They want to show off their space, and that’s pretty much what we’re about.”
Davidson adds the space has been part of the journey for “maybe 70 millionaires”.
Flexible Workspace Australia co-chair Jessie Glew, who is also CEO of WOTSO Property, says Covid has normalised remote work, while technology has made flexible work easier than ever.
However, she believes the sector is “just scratching the surface”, with significant room for expansion.
“It’s certainly a growing business … they don’t have to lock into a long-term lease.”
Enough room for a third space, too. Picture: Supplied
Glew says there has been higher demand for co-working near where people live. Co-workers also increasingly want community, networking and workspace close to home.
“There could be a lot more suburban and regional co-working. But if you speak to a lot of other groups in the industry, they’re more focused on the CBDs,” she says.
Glew says specialist co-working spaces are also emerging, serving sectors from e-commerce and trades to commercial kitchens.
“There’s definitely been a growth in the number of spaces nationally, and now we’re starting to see these niche spaces.”