For years the assumption was that coworking meant the CBD. A George Street address in Sydney, a Collins Street address in Melbourne. That made sense when coworking was primarily about projecting a professional image for clients who expected city centre offices.
That assumption has shifted. According to Flexible Workspace Australia's 2026 industry report, growth in the coworking sector is now coming predominantly from outside traditional CBD locations, with suburban and regional markets expanding as workers look for options closer to where they actually live. The price difference is a significant driver: median desk rates in Sydney's CBD reach around $1,000 per person per month, while spaces outside the CBD are considerably cheaper.
What Is Actually Driving the Shift
Hybrid work has settled into something stable for most knowledge workers. Two or three days a week in a shared workspace, the rest at home. For that pattern, commuting into the CBD for a coworking desk no longer makes obvious sense. You are paying for a CBD address you do not need, and spending up to an hour each way on a train or in traffic to get there.
Suburban coworking solves a different problem. It gets you out of your home office and into a professional environment, without the commute.
Jessie Glew, CEO of WOTSO and co-chair of Flexible Workspace Australia, described the trend directly:
"What I am noticing a lot is a real desire for suburban and flexible co-working operators."
Her read on the place coworking now occupies in suburban life is straightforward:
"It's become like the gym or the childcare centre or the coffee shop — it's needed as part of an asset's genetic makeup."
Landlords have noticed. The same report found that landlord allocation to flexible workspace has doubled over the past three years, with suburban property owners actively seeking coworking operators to anchor their buildings.
Sydney
More than half — 53 percent — of all five to ten person offices in Sydney are already flexible workspaces, and more than three-quarters of all one to four person offices are flexible. The CBD market is mature. Growth is suburban.
WOTSO, which built its national network of 42 hubs specifically around suburban and regional locations, opened its first Sydney CBD location at Stockland's Piccadilly Complex in Pitt Street in late 2025, having spent years proving the suburban model first. All the private flex offices at the Piccadilly space were taken almost immediately after opening [Business News Australia, businessnewsaustralia.com , September 2025].
In suburban Sydney, active coworking markets are developing in:
- Parramatta
- Chatswood
- Newtown
- Surry Hills
- Outer western suburbs
- Northern suburbs
Parramatta has grown into a significant secondary business hub with strong rail links. Chatswood continues to attract workers on the upper north shore. Newtown and Surry Hills remain popular inner-ring locations, while outer western and northern suburbs are seeing growth as residential density outpaces workspace supply.
The cost saving between suburban and CBD coworking in Sydney is meaningful.
A dedicated desk in a CBD premium space at $1,000 per month versus a suburban desk at $300 to $500 per month represents a saving of between $6,000 and $8,400 per year.
For a sole trader or small team, that is real money.
Melbourne
Victoria has more coworking spaces than any other Australian state, and Melbourne's market is the most developed outside Sydney.
The CBD, particularly the Collins Street precinct, retains strong demand. Growth is increasingly happening in inner-suburban areas.
Established coworking communities are developing in:
- Fitzroy
- Collingwood
- Richmond
- St Kilda
- Prahran
These suburbs attract:
- Creative industries
- Technology workers
- Independent professionals
Spaces in these areas tend to be smaller and more community-oriented than CBD operators, with monthly rates reflecting the lower overhead costs of suburban premises.
Further out, suburbs including:
- Northcote
- Brunswick
- Footscray
are developing coworking scenes driven by population growth and the increasing number of Melbourne residents working remotely full-time.
WOTSO is looking to expand further into suburban and regional areas across the country, which provides a clear indication of where major operators see future demand.
What You Give Up
The shift to suburban coworking is not without trade-offs worth being honest about.
Address Prestige
A suburban address does not carry the professional weight of a CBD address in sectors where that matters.
A Collins Street or George Street address on a business card means something to certain clients in:
- Finance
- Law
- Professional services
For businesses in these sectors, paying a CBD premium may still be worthwhile.
Meeting Room Access
CBD spaces typically have:
- More meeting rooms
- Better facilities
- Greater booking availability
A suburban space with only a handful of meeting rooms can feel limited on a busy day.
Networking Opportunities
Networking communities in suburban spaces are usually more local and less diverse by industry than those found in large CBD coworking hubs.
If part of the value of coworking for you is exposure to people in adjacent industries, a large CBD space often delivers that more effectively than a smaller neighbourhood location.
The Bottom Line
The growth of suburban coworking reflects a simple reality. most people no longer need to commute into the CBD every day to do productive work.
For remote workers, freelancers, and small teams, suburban coworking offers the same core infrastructure — desks, internet, meeting rooms, and community — at a significantly lower cost and with far less commuting time.
For businesses that rely on prestige addresses, high-volume client meetings, or broader networking opportunities, the CBD still offers advantages that may justify the higher price.
For everyone else, the suburbs are increasingly where the growth is happening.