Industry Statistics and Trends
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 2.3 % over the past five years, to reach an estimated $652.2m in 2024.
Trends and Insights
Flexible workspace demand surges as remote work reshapes offices
- The shift to hybrid work models has driven demand for flexible office spaces in Australia, with businesses seeking short-term leases and scalable solutions. Start-ups and small-to-medium enterprises, which prioritise agility and cost-effectiveness, are key drivers of demand. Even so, widespread work-from-home adoption has reduced the overall need for office space, weighing on industry revenue.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Increased demand for flexible office models is set to drive growth
- The rising demand for flexible office models increasingly shapes the outlook for the serviced office leasing market in Australia. As hybrid work arrangements become the norm, both large corporations and small-to-medium enterprises (SMEs) are looking to reduce their permanent office footprints. This shift is expected to drive significant growth in flexible workspace solutions.
Biggest companies in the Serviced Office Leasing in Australia
| Company | Market Share (%)
2025 | Revenue ($m)
2025 |
|---|---|---|
WeWork Australia | 92.5 | |
Regus Australia | 67.9 | |
WOTSO | 55.5 |
To view the market share and analysis for all 6 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Serviced offices, Virtual office services and Conference and meeting rooms. Serviced offices is the largest segment of the Serviced Office Leasing in Australia.
Trends and Insights
Demand for serviced offices sees slight growth as hybrid work trends strengthen
- Serviced offices offer ready-to-use office spaces on flexible lease terms, appealing to businesses aiming to reduce fixed lease obligations. They may also provide common reception areas and services.
- More insights available in the full report
Table of Contents
About this industry
Industry definition
The Serviced Office Leasing industry rents or leases fully furnished office space to businesses on a part-time or as-needed basis. Serviced office operators also lease virtual offices and conference rooms.
What's included in this industry?
Serviced officesVirtual office servicesConference and meeting roomsCompanies
WeWork AustraliaRegus AustraliaWOTSOPurchase this report to view all 6 major companies in this industry.
Related Terms
HOT-DESKINGTHIRD-PLACE ENVIRONMENTVIRTUAL OFFICESCOWORKING SPACEHYBRID WORK MODELFLEXIBLE LEASINGIndustry Code
ANZSIC 6712 - Serviced Office Leasing in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Flexible workspaces are in high demand because of the shift towards remote and hybrid work models. Businesses now prefer serviced offices with short-term leases and scalable ...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
The rise of flexible, tech-enabled workspaces responds to hybrid work trends. Businesses increasingly seek adaptable office solutions, like serviced offices and virtual offic...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Eastern seaboard states are key for serviced office establishment. Most serviced offices are located in the central business districts of Sydney and Melbourne, aligning with ...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
The threat of new entrants remains moderate because of high capital requirements. Establishing a serviced office requires significant investment in prime locations and infras...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
WeWork is showing signs of recovery with flexible working trends. Following significant losses during the pandemic, WeWork Australia has begun to recover as businesses shift ...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of WeWork Australia's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Regus Australia's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of WOTSO's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 3 additional companies
Detailed analysis
- Description and key data for WeWork Australia, and factors influencing its performance in the industry
- Description and key data for Regus Australia, and factors influencing its performance in the industry
- Description and key data for WOTSO, and factors influencing its performance in the industry
- Description, key data and performance trends for 3 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Business bankruptcies present challenges for serviced office providers. A hike in business bankruptcies negatively impacts occupancy rates and tenant stability. Vacated space...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Serviced office providers are seeing improved profit margins thanks to the rise in flexible work models. Hybrid and remote work have boosted demand for adaptable office solut...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Top Questions Answered
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Serviced Office Leasing industry in Australia in 2024?
The market size of the Serviced Office Leasing industry in Australia is $652.2m in 2024.
How many businesses are there in the Serviced Office Leasing in Australia industry in 2024?
There are 703 businesses in the Serviced Office Leasing industry in Australia, which has declined at a CAGR of 0.8 % between 2019 and 2024.
Has the Serviced Office Leasing industry in Australia grown or declined over the past 5 years?
The market size of the Serviced Office Leasing industry in Australia has been declining at a CAGR of 2.3 % between 2019 and 2024.
What is the forecast growth of the Serviced Office Leasing industry in Australia over the next 5 years?
Over the next five years, the Serviced Office Leasing industry in Australia is expected to grow.
What are the biggest companies in the Serviced Office Leasing market in Australia?
The biggest companies operating in the Serviced Office Leasing market in Australia are WeWork Australia, Regus Australia and WOTSO
What does the Serviced Office Leasing in Australia include?
Serviced offices and Virtual office services are part of the Serviced Office Leasing industry.
Which companies have the highest market share in the Serviced Office Leasing in Australia?
The company holding the most market share in Australia is WeWork Australia.
How competitive is the Serviced Office Leasing industry in Australia?
The level of competition is high and increasing in the Serviced Office Leasing industry in Australia.
Related Industries
Widen your competitive advantage with related industries
Competitors
- Office Property Operators in Australia
- Facilities Management Services in Australia
Complementors
- Real Estate Services in Australia
- Commercial and Industrial Building Construction in Australia
- Industrial and Other Property Operators in Australia
- Cowork Space in Australia
International industries
- Serviced Office Leasing in the US
- Serviced Offices in the UK
- Office Equipment Rental & Leasing in the UK
- Rental & Leasing in the UK
View all industries in Australia
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
