IWG, the world’s leading provider of hybrid work solutions, has announced that is has added 612 new locations since January 2023.
An overwhelming 95% of these new locations are being delivered via managed partnership agreements, delivering on IWG’s capital light strategy. The rapid growth in new locations is being driven by property owners and partners seeking to capitalise on the burgeoning demand for hybrid working. Many of these property owners have vacant space to fill with the decline in demand for traditional office real estate. They are choosing to partner with IWG’s industry leading hybrid working platform and benefit from a choice of multiple brands including Regus, Spaces, HQ and Signature.
Mark Dixon, Founder and CEO of IWG said: “Today, we are continuing to witness the unprecedented rise of the Great Lease Resignation. Businesses of all sizes are terminating their long-term commercial office leases and replacing them with shorter-term agreements with flexible-workspace providers like IWG.
“As a result, we’re seeing strong interest from a growing cohort of property owners and investors, seeking to capitalise on the rising demand for hybrid working solutions by partnering with the global leader. It is this fundamental shift that is fuelling the rapid growth of the IWG network”.
IWG is working with landlords and developers to transform conventional spaces into dynamic and thriving work environments for workers, while generating substantial and sustainable revenue streams for its partners. IWG added 462 new locations in 2022 alone, so this new milestone represents significant growth.
Growing customer demand for hybrid working is being driven by two distinct yet complementary real estate trends. First, companies are reappraising their property portfolios and downsizing in city centres, replacing long, restrictive, and expensive leases with flexible space with operators like IWG. Second, they are taking on flexible workspace in local neighbourhoods, closer to where their people live and want to be, as part of the increasingly popular ‘hub-and-spoke’ office model, where employees divide their time between home, local offices, and city headquarters.
A sizeable proportion of IWG’s new locations are in the suburbs, smaller towns and cities which are seeing the strong demand for hybrid working solutions, with the Group expanded its network locations deep into the heart of the communities where they are needed.
Growth has been extremely strong in North America with more than 250 of the new locations situated in the U.S. alone. A study by IWG and Arup found that 500,000 people have left U.S. cities this year – 59% higher than pre-2020 levels – with most moving to suburbs, revitalised former dormitory towns and rural areas.
IWG’s expanded network means these areas are now better served by flexible workspaces, allowing employees to work wherever most productive. Similar trends have been noted in the UK and across the globe, with IWG’s asset light strategy meaning the company can expand and adapt quickly to meet this demand.
Desire among workers to avoid lengthy and costly daily commutes has also had a major impact, with many aiming for improved work-life balance and to cut down on unnecessary expenses. According to IWG’s research, only one in five workers would commute more than 30 minutes daily, while 60% express a desire for a workspace within 15-minutes of their homes. A study of 2,000 hybrid workers** has also shown that hybrid workers enjoy an average increase of 4.7 weekly exercise hours, 71 hours of sleep per year, and improvements in their diet.
With almost 4,000 locations spanning across more than 120 countries in every time zone, and leveraging its three decades of experience, IWG provides an array of workspace solutions for properties of all shapes, sizes, and descriptions. Whether it’s a two-storey building in an out-of-town business park, an office block in a prestigious downtown locale, or a former retail unit in a bustling shopping centre, IWG tailors its offerings to meet the diverse demands of its partners and customers.
Becoming an IWG partner or franchisee provides access to a wealth of expertise in flexible workspace solutions. Partners gain access to IWG’s platform to maximise the return on their real estate space by capitalising on the rapidly expanding demand for hybrid working. With an annual investment of around £50m into its technology platform, IWG provides partners with access to all the company’s expertise as well as design and fit-out support and sales and marketing capabilities.
Partner locations can go from concept to fully operational in as little as 10 weeks, while the partnership model provides string recurring monthly income without the headaches of lengthy renewals or void periods or overreliance on single leases.
The flexible workspace sector is projected to grow by 600% by 2030, and data from Indeed, the world’s largest job site, has reported a staggering 6,531% year on year increase in searches for ‘hybrid’ in 2022. As businesses embrace hybrid working for the long term, IWG’s solutions become a strategic advantage for property owners seeking to capitalise on this trend.
Mark Dixon, IWG CEO comments: “At IWG, we have accelerated our capital light growth strategy allowing us to capitalise on the growing pipeline of property investors seeking to maximise their returns by partnering with us. In fact, we signed as many agreements in the first half of 2023 as we did in the whole of 2022 and we continue to accelerate. The fast-increasing coverage provided by our global network, with thousands of locations in more than 120 countries is a key competitive advantage and is providing our customers with a high quality and professional place to work, no matter where they are.”