An increased demand for co-working spaces is taking the Brisbane CBD office market by storm, according to the latest report by Knight Frank.

Knight Frank's Brisbane CBD Office Market Overview reveals the trend is gathering momentum in the city, with little signs of it slowing down.

“As the Brisbane economy strengthens, we are seeing demand from a wide range of tenants in the CBD office market, but there is one standout gathering momentum – providers of co-working/flexible workspace,” said Knight Frank's Partner and Joint Head of Office Leasing, Campbell Tait.

“We recently negotiated the lease in the Daisho-owned 192 Ann Street, known as 192 Central, for WeWork’s first Brisbane offering. The global space, community and services company secured 7,400 square metres over two-and-a-half floors plus a large roof top terrace.

“With a number of other co-working groups in the market looking for space it’s a trend in Brisbane that is continuing to gather momentum," Mr Tait continued.

"With higher tenant demand across the board, along with stock withdrawals and limited new supply until the second half of 2019, conditions in the CBD are expected to improve."

Vacancy rates have fallen in the Brisbane CBD office market from 16.1 per cent in January to 14.6 per cent in July, and are expected to drop to 13 per cent by the end of the year, according to the report.

“There is also a strong pipeline of major project and infrastructure investment focussed on the CBD, including the Cross River Rail, which we’re seeing upside from – it will result in an immediate spike in demand from tenants required to relocate from assets such as the Brisbane Transit Centre," Mr Tait said.

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