COMMERCIAL PROPERTY, SALES & LEASINGCORONAVIRUS COVID-19 PANDEMIC

Deague expands into co-working sector

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DEVELOPER Deague Group has partnered with co-working venue operator The Commons and serviced office specialists APSO to open a new flexible office space venture within its new South Melbourne commercial complex.

The new co-working brand is designed with executives and corporates in mind and will be known as Central House.

The partners are already eyeing off a nationwide expansion of the venture once it is established at 101 Moray Street.

“This is territory we have been exploring for some time.” The Commons managing director, Cliff Ho said.

“We knew that our first partnership had to be alongside a commercial landlord with a wealth of experience and authority like the Deague Group. We started working with their team in 2019 when they were looking for a trusted operator to partner with.”

Cliff believes that many business owners and companies will continue establishing a hybrid of office and work from home operations.

“We have confidence in the market and back ourselves in this space to become a highly-sought-after operator of flexible workspaces in Australia. We have spent a huge amount of resources building our own technology to help roll this out and to scale over time,” said Cliff.

Despite the WeWork IPO saga, investors in co-working space have been advised by research house Morningstar to stick with the sector. The financial services firm expects co-working office space internationally to increase from around 360 million sq ft to about 2.5 billion sq ft by from 2018 to 2028, which would represent an increase from around 2.5% of occupied office space globally to around 15%

Deague Group managing director, Jonathan Deague said Central House “embodies a more premium feel, conceptualised for corporates of all sizes”, shifting from the more relaxed, creative spaces of The Commons.

“We had identified a gap in the market for an executive shared workspace, catering for professionals, but didn’t want to just open a basic office with a minimal offering,” Deague said.

Corporates looking to sign up can choose from a private office, dedicated desk, open desk and virtual office.

The Commons is located in South Melbourne, Collingwood, QV and Sydney, with its latest location in Cremorne seeing every office filled within the first 10 weeks of opening. It will launch its next site in South Yarra in the coming months.

Deague Group recently leased the whole of level five of the 101 Moray Street building to global software group Xplor in a seven year deal. Some 150 head office staff will be based at the 1,649 sqm office from June.

Also in the building are Adobe, which has taken out a lease for 527 sqm, and listed advertising company, Ooh! Media.

Rents in the building are believed to be between $550 and $600 per sqm.

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