JustCo to open Emporium co-working space despite office headwinds
Singaporean flexible workspace operator JustCo is set to open a co-working hub at the Emporium Melbourne, a multi-storey shopping mall located in heart of the CBD, even as the city experiences a slow return to office work.
Despite CBD vacancy rates rising to record levels, JustCo co-founder and CCO Kong Wan Long said he was undeterred in opening a seventh co-working space across the Melbourne and Sydney CBDs, as there had been growing demand from companies that downsize and adopt hybrid work policies.
“We’ve seen an uptick in demand for our co-working solutions, especially since the onset of COVID-19. This reflects how more companies have adopted hybrid working,” he said.
Mr Kong said demand for JustCo’s co-working spaces in Australia had been high, with occupancy rates sitting around 80 per cent.
The Emporium co-working hub will have private office suites, hot desk zones, and meeting rooms across 2870 square metres of space. In total, the space will be able to fit 450 workers.
It will sit beneath three levels of retail shops, which includes Aesop, Kookai and RM Williams. The Emporium also has restaurants such as Din Tai Fung, Haidilao Hot Pot and Tetsujin.
JustCo’s decision to launch another co-working space will fill the fourth floor of the Emporium, which has been largely vacant since May 2020. Myer was the previous tenant, but opted not to renew its lease as part of cost-cutting measures.
The fourth floor was set to be leased to another flexible workspace provider in 2019, but The Australian Financial Review understands that deal fell through.
Over the past three and a half years, the vacant space has been used as an activation space for holiday occasions and events such as Melbourne Fashion Week.
Emporium Melbourne centre manager Gordon White said signing JustCo as a tenant would bolster the shopping centre’s ability to be a CBD destination that offers “work, play, dine and shop”.
JustCo’s decision to open another co-working space comes as flexible workspace providers in Australia post a mixed bag of performances.
The Commons turned a profit of $8.9 million in FY2023, thanks in part to downsizing corporates, while others such as WeWork have posted mounting losses.
JustCo has adopted a strategy of opening co-working spaces in central locations, so tenants can be close to amenities, Mr Kong said.
He said pre-leasing for the Emporium Melbourne had begun, with the company already receiving interest from anchor tenants for private office suites.
“We have good mix of larger companies such as [multinational corporations], as well as small and medium enterprises, including start-ups.
They vary across different industries including tech, financial services, professional and legal services, and a lot of local business owners,” Mr Kong said.
JustCo’s Emporium hub will become available from early 2024.
