Why co-working spaces are popular

Business name
Business Victoria
Last updated date
12 Aug 2026

Whether you're a sole trader, a startup founder or managing a growing team, the right workspace can influence your business’ productivity, costs, collaboration and growth.

For some small businesses, co-working spaces offer a flexible and cost-effective alternative to a traditional office. From networking opportunities to flexible lease terms, co-working spaces can provide a range of benefits that help small businesses operate more efficiently and scale sustainably.

Melbourne co-working communities Inspire9 and Sanders Place share their advice on how small businesses can make the most of co-working spaces.

Inspire9: building your business through community

Located inside Richmond's heritage-listed Australian Knitting Mills building, Inspire9 is one of Melbourne's longest-running co-working spaces and business communities, operating since 2008.

The building’s industrial character gives the co-working space its charm, but it’s the people who give it purpose.

‘One of the biggest misconceptions about co-working is that you're simply renting a desk. In reality, you're joining a business community,’ Inspire9 said.

‘The main benefit of a co-working space is access to a professional workspace where you can focus, meet clients and most importantly surround yourself with like-minded people.’

The value of everyday connections

According to Inspire9, the strongest benefits of co-working often come from informal interactions rather than structured networking events.

Members regularly share knowledge, exchange referrals and collaborate on projects as part of their day-to-day work. Founders, freelancers, creative agencies and established businesses work alongside each other, creating natural opportunities to learn from different industries and experiences.

‘We've seen members find business partners, hire employees, work with other internal companies, meet investors, secure mentors, collaborate on projects and generate new clients. This is often through conversations that happen naturally over coffee rather than at formal networking events.’

These connections provide access to professional expertise that may otherwise be difficult for some small business owners to find.

As Inspire9 explains, ‘when you're surrounded by people solving different challenges and bringing different expertise, you learn faster, make stronger business decisions and expand your professional network organically.’

Flexibility that supports growth

Co-working spaces allow owners to run their business without taking on significant office set-up costs or lengthy lease commitments. Businesses can increase or reduce their workspace as their requirements change.

Inspire9 believes the ability to scale up or down allows businesses to focus on growth instead of office management.

Co-working also offers access to meeting rooms, private offices, breakout spaces and business facilities without the costs associated with establishing and managing a traditional office.

This flexibility can be particularly valuable for startups and small businesses that may not yet know how much space they will need in the future. Inspire9 has seen businesses join as teams of 2 people before growing to have more than a dozen employees.

Sanders Place: the hub for Melbourne's impact community

Just off Church Street in Richmond, Sanders Place has transformed a former chocolate warehouse into an award-winning co-working space designed for creativity, collaboration and connection.

Sharing the space also means members benefit from a level of investment in sustainable design, air quality, greenery and natural light that would be hard to justify alone. These are features that go beyond aesthetics to support a more focused, productive working environment.

Today, its light-filled spaces bring together founders and teams working in climate, health and social impact, alongside impact investors and the professional services that support them.

At Sanders Place, community management plays an important role in turning a shared workspace into a valuable business network.

‘We know every member's name and what they're working on, so we can make relevant introductions with confidence, not just random ones and point people to events that are actually relevant to them,’ Sanders Place said.

This personalised approach can help business owners build trusted relationships faster than they might if they were working alone.

Access to referrals, mentoring and customers

The benefits of co-working often extend well beyond the physical workspace. Sanders Place believes referrals are among the most valuable outcomes for members, made easier by a community that's already aligned around the same kind of work.

‘An engineer meets a founder meets an impact investor, and work starts flowing between people who'd never otherwise have met.’

Co-working spaces can also provide access to informal mentoring, industry events, investor networks and potential customers. For small businesses that may have limited marketing budgets or professional networks, these connections can help open doors that may otherwise be difficult to access.

There's also value in being surrounded by people with different skills and experiences who can offer advice, support and fresh perspectives.

The combination of professional facilities and a supportive business community can create an environment that helps businesses grow organically.

Choosing the right co-working space

Before joining a co-working space, it is important to consider how often you will use the workspace and whether its location is convenient for your employees, clients and business partners.

'Be honest about whether you'll actually use it, and if it's the right location for your commute and client meetings, not an aspirational one,’ Sanders Place recommends.

Importantly, Sanders Place suggests trying out a space before committing where possible. ‘A good co-working space will let you try it for a day or a week first.’

Testing a workspace can help you assess the atmosphere, facilities and community to determine whether it is the right fit for your needs.

Sanders Place also suggest that you, ‘treat your workspace as a growth decision, not a cost line. Choose somewhere that puts you in front of the people and opportunities that will actually move your business forward.’

A workspace that works for your business

Whether you're starting a business, expanding your team or looking for a location beyond your home office, it's worth exploring your options.

Visit local co-working spaces, take advantage of trial offers and consider the value of the community alongside the physical facilities.

Most importantly, remember that your workspace is more than a business expense. The connections, knowledge and opportunities you gain could become just as important as the workspace itself.