The popularity of coworking has grown worldwide, and Australia has been part of this trend. Statista reports that the number of global coworking spaces increased from around 18,700 in 2018 to more than 28,000 in 2022, with forecasts suggesting continued growth through 2025.
In Australia, demand has followed a similar path. Industry reports show that flexible and shared office spaces are expanding across CBDs, suburbs and regional areas. Employers are maintaining hybrid models, and many professionals are seeking alternatives to long-term office leases. Features such as central locations, on-demand meeting rooms and the chance to collaborate face-to-face remain key attractions.
This shift has supported steady growth in coworking memberships as more businesses and individuals adopt flexible workspace options.
What is a Coworking Space?
A coworking space is a shared office environment where businesses, start-ups, and individuals can access hot desks, dedicated desks, or private suites. Membership often includes high-speed internet, reception services, printing, and access to meeting rooms.
Coworking has become popular with freelancers, consultants, and growing companies because it removes the burden of long-term leases and allows members to scale up or down easily. With providers such as Servcorp’s coworking spaces, members also enjoy global access to professional facilities, ensuring continuity wherever business takes them.
What is a Traditional Office?
A traditional office involves leasing a dedicated commercial space on a fixed-term basis, often requiring multi-year commitments. Businesses control the fit-out, design, and daily operations, but this comes with added responsibilities such as security, cleaning, and IT management.
Traditional offices are usually suited to larger, established companies seeking privacy, stability, and a branded environment. While the cost is often higher, organisations value the exclusivity and control it provides.
Coworking vs Traditional Office Features
When comparing a coworking space vs traditional office, it’s not enough to look at cost alone. Businesses should also weigh flexibility, culture, amenities, privacy, location, affordability, and even aesthetics. Each factor influences how effectively a workplace supports staff and business growth.
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Flexibility
Coworking allows businesses to operate on short-term, month-to-month agreements with the ability to scale up or down at any time.
This is especially valuable for start-ups or hybrid teams that cannot predict future headcount. Many coworking providers also include access to global locations under one membership, making it easy to expand into new cities.
Traditional offices, by contrast, rely on multi-year leases that provide stability but limit adaptability, requiring businesses to lock in long-term commitments.
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Culture
Coworking promotes collaboration and creativity, with professionals from different industries working side by side. Networking events and shared spaces foster a sense of community.
Traditional offices, however, create a consistent corporate culture where organisations can embed their brand identity, values, and internal processes. This suits businesses that need confidentiality, structure, and a uniform way of working.
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Amenities and Facilities
Coworking memberships usually bundle essentials such as reception staff, high-speed internet, refreshments, IT support, and ready-to-use meeting rooms. This all-inclusive model reduces upfront investment.
In traditional offices, businesses design their own space and amenities, which allows full customisation but requires additional contracts for cleaning, IT, and other services.
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Privacy and Security
Coworking spaces are typically open plan, which can pose challenges for confidentiality. However, premium providers include private offices, secure data systems, and phone booths to balance this.
Traditional offices deliver complete control over privacy and security, making them the preferred option for industries handling sensitive information.
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Location and Accessibility
Coworking spaces are often located in central business districts and close to public transport, making them highly accessible for staff and clients. Some providers, including Servcorp coworking worldwide locations, also offer international access, allowing members to work seamlessly across cities.
Traditional offices depend on lease availability, and prime locations typically come at a higher cost. Businesses may need to compromise on accessibility if budgets are limited.
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Aesthetics
Coworking spaces typically provide stylish, modern interiors designed to impress clients and boost productivity without upfront investment.
Traditional offices allow full creative control over layout and décor, letting businesses reflect their brand identity, but at a significantly higher fit-out cost.
This closer look demonstrates that coworking is designed for adaptability, bundled value, and easy access, while traditional offices prioritise stability, customisation, and privacy.
This closer look demonstrates that coworking is designed for adaptability, bundled value, and easy access, while traditional offices prioritise stability, customisation, and privacy.
The most suitable choice depends on the nature of your business, your financial model, and the experience you want to create for employees and clients.
Coworking vs Traditional Office Costs
The cost structure highlights one of the biggest differences between coworking and traditional offices.
Coworking: Membership fees include utilities, internet, receptionist services, and office equipment. For businesses needing only a premium address or communications support, options such as Servcorp’s Virtual Office Address Package or Communications Package offer lower-cost alternatives.
Traditional Office: Requires significant upfront investment in fit-out, furniture, and IT, plus ongoing costs for cleaning, maintenance, and utilities. While customisable, it can strain budgets for smaller teams.
Ultimately, coworking provides transparency with predictable monthly fees that already include key services, whereas traditional offices demand higher upfront and ongoing investment.
For Australian businesses, especially small enterprises and start-ups, this makes coworking particularly attractive, as it delivers the professionalism of a corporate office without the financial risk of a long-term lease.
Are Coworking Spaces Becoming More Popular?
The popularity of coworking has grown worldwide, and Australia has been part of this trend. Statista reports that the number of global coworking spaces increased from around 18,700 in 2018 to more than 28,000 in 2022, with forecasts suggesting continued growth through 2025.
In Australia, demand has followed a similar path. Industry reports show that flexible and shared office spaces are expanding across CBDs, suburbs and regional areas. Employers are maintaining hybrid models, and many professionals are seeking alternatives to long-term office leases. Features such as central locations, on-demand meeting rooms and the chance to collaborate face-to-face remain key attractions.
This shift has supported steady growth in coworking memberships as more businesses and individuals adopt flexible workspace options.
Which Workspace Fits the Future of Your Business?
Choosing between a coworking space vs traditional office depends on your priorities. If flexibility, networking opportunities, and affordability are top concerns, coworking provides immediate benefits. If privacy, brand consistency, and long-term stability matter most, a traditional office is often the better fit.
For many businesses, the answer lies in combining both: adopting coworking memberships for agility while keeping a smaller private office for leadership teams or confidential work. In Australia’s dynamic market, this hybrid model continues to gain momentum, helping organisations balance adaptability with professionalism.
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