{"id":8389,"date":"2020-06-09T12:23:41","date_gmt":"2020-06-09T05:23:41","guid":{"rendered":"https:\/\/www.asiapropertyawards.com\/?p=8389"},"modified":"2021-06-04T15:01:25","modified_gmt":"2021-06-04T08:01:25","slug":"pandemic-forces-co-working-operators-in-australia-to-close","status":"publish","type":"post","link":"https:\/\/www.asiapropertyawards.com\/en\/pandemic-forces-co-working-operators-in-australia-to-close\/","title":{"rendered":"Co-working operators in Australia resort to closures due to the pandemic"},"content":{"rendered":"<p><span class=\"TextRun SCXW42738863 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW42738863 BCX0\">While those that did remain open\u00a0<\/span><\/span><span class=\"TextRun SCXW42738863 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW42738863 BCX0\">st<\/span><\/span><span class=\"TextRun SCXW42738863 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW42738863 BCX0\">ruggle<\/span><\/span><span class=\"TextRun SCXW42738863 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW42738863 BCX0\">\u00a0to\u00a0<\/span><\/span><span class=\"TextRun SCXW42738863 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW42738863 BCX0\">make ends meet<\/span><\/span><\/p>\n<figure id=\"attachment_8390\" aria-describedby=\"caption-attachment-8390\" style=\"width: 1000px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" class=\"size-full wp-image-8390\" src=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2020\/06\/shutterstock_1751453600.jpg\" alt=\"\" width=\"1000\" height=\"588\" srcset=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2020\/06\/shutterstock_1751453600.jpg 400w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2020\/06\/shutterstock_1751453600.jpg 600w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2020\/06\/shutterstock_1751453600.jpg 1000w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><figcaption id=\"caption-attachment-8390\" class=\"wp-caption-text\">Young people working inside co-working creative office, while wearing protective face masks for COVID-19 spread prevention. DisobeyArt\/Shutterstock<\/figcaption><\/figure>\n<p>According to Dan Baxter of Victory Office, the COVID-19 outbreak has forced businesses to close because of limited cash flow needed to survive. To date, <a href=\"https:\/\/www.commercialrealestate.com.au\/news\/only-the-strong-will-survive-co-workings-pandemic-961219\/\" target=\"_blank\" rel=\"noopener noreferrer\">Commercial Real Estate<\/a> revealed that only three to four large co-working offices remain open.<\/p>\n<p>Just a week ago, Victory Office was able to obtain AUD15.3 million (USD10.6 million) through capital raising to reinforce their balance sheet, which will help them effectively control the ongoing impact of the pandemic, as well as finance their operating expenses in the next 12 months after filing for a seven-week voluntary suspension from trading on Australian Securities Exchange (ASX).<\/p>\n<p><a href=\"https:\/\/www.asiapropertyawards.com\/en\/commercial-property-investment-deals-in-australia-tapered-off-amid-pandemic\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>More: Commercial property investment deals in Australia tapered off amid pandemic<\/strong><\/a><\/p>\n<p>Dan shared that most of the smaller operators, especially those who only focused on providing co-working spaces and not serviced office suites, were having difficulty surviving the current climate.<\/p>\n<p>\u201cIf things continue as they are and slowly improve, we will see about three to four players \u2013 the stronger and bigger ones \u2013 operating in this space,\u201d said Dan.<\/p>\n<p>\u201cThe smaller ones will fall down because it is a capital-intense industry and if the occupancy rate goes down to a very low number, they won\u2019t be able to survive. The resilience is not there, which is why you will see the big players, like Regus (now IWG), Victory and Servcorp there for the long term.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>While those that did remain open struggle to make ends meet <\/p>\n","protected":false},"author":9,"featured_media":20605,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[92,1],"tags":[149,766,847],"class_list":["post-8389","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-property-report","tag-australia","tag-co-working","tag-flexible-offices","news_country-australia","news_author-property-report"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Co-working operators in Australia resort to closures 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