IWG Signs Agreements for Three New HQ Locations in California

SACRAMENTO, CA – International Workplace Group (IWG), the world’s largest flexible workspace organization with over 3,300 locations across 1,200 cities worldwide, recently announced the signing to open a new flexible workspace in Modesto, Glendale and Sacramento, California. As a result of the growing demand for flexible workspaces, accelerated by the COVID-19 pandemic, IWG is poised for significant growth in both suburban and urban markets across North America. This prominent partnership is an important step as IWG expands its footprint in the region.

The new HQ center in Modesto will sit inside a building with ample parking and easy freeway access to Highway 99. Located at 4701 Stoddard Road in Modesto’s Landmark Business Park, the property is less than one mile from local restaurants, shopping and a great family community. Another new HQ center is coming to Glendale, as well.

Glendale’s economic development program is designed to promote an 18-Hour City that is business-friendly and also provides a vibrant environment for people to live, work and be entertained. Finally, a new HQ center will also open in Sacramento, with underground parking available and great building and monument signage opportunities. The location is in close proximity to many retail services, and neighboring tenants include Kaiser Permanente - Covered CA, Bank of the West - UBS, UC Davis and the American Cancer Society.

California expansion plans

“All the new spaces in California are a great addition to the IWG brand,” said Wayne Berger, CEO of IWG Americas. “We are happy to provide more access to flexible workspaces across the state.”

Currently, 42% of the U.S. workforce is working remotely on a full-time basis, and the global flexible workspace industry is projected to nearly double in size, from $7.97 billion to $13.03 billion, by 2025. According to JLL, by 2030, 30% of all commercial office space will represent flexible workspaces, whereas today, it is less than 4%.

“The flexible workspace industry is growing exceptionally fast,” said Berger. “The pandemic forced most people to work from home for two years, creating a monumental shift in how employees want to work moving forward, and how companies are supporting their employees and their bottom line. People want flexibility, and progressive companies understand the financial and operational advantages of moving a percentage of their real estate portfolio from a traditional lease model to flexible workspaces.

This signals that flexible workspaces are the future of the global work environment, and IWG offers investors an exciting opportunity to get in now while there is still room.”

Flexible workspace concepts

IWG offers four flexible workspace concepts under its umbrella to match every kind of business, work style and price point, including professional workplace brand Regus, creative workplace brand Spaces, hassle-free workplace brand HQ and luxurious workspace brand Signature.

With over three decades of experience, IWG has fine-tuned its business model to optimize revenue and provide business investors and property management companies with an attractive opportunity.

“As opposed to a traditional capital lease, business investors can sign a partnership agreement with IWG and invest the capital in converting the space into a dynamic and productive flexible workspace, earning operating income from day one, a higher return on net assets and increased flexibility,” said Berger. “For business investors, IWG represents a unique opportunity to enter the booming flexible workspace industry, which offers wide open territory availability, low start-up costs, simplified operations and more.”

The new signings in California are the latest addition to the IWG footprint, expanding rapidly as it capitalizes on the fast-growing demand for flexible workspaces. The team plans to open several more locations in the region.

Future of work trends

“The world is seeing a complete renaissance of the workplace,” said Berger. “90% of employees want to work in a flexible way, 88% of companies have instated flexible arrangements and 50% of employees say they will leave their job if they can’t work flexibly. We’ve been a big part of that evolution, and we are excited to continue expanding in markets across North America, from big cities to small towns.”

Looking ahead, IWG aims to add 1,000 new locations in North America a year as it continues to attract a variety of business investors, property management companies, banks and asset managers.

IWG provides flexible workspaces in convenient locations alongside industry-leading technology, enabling teams to collaborate better and more seamlessly. It also offers shorter lease commitments, thereby allowing for ultimate flexibility.

IWG companies help millions of people and their businesses to work more productively. It provides a choice of professional, inspiring and collaborative workspaces, communities and services.

Digitalization and new technologies are transforming the world of work. People want the personal productivity benefits of living and working how and where they want. Businesses want financial and strategic benefits. IWG’s customers are start-ups, small and medium-sized enterprises, and large multinationals with unique business goals, people and aspirations. They want workspaces and communities to match their needs. They want choice.

Through its companies, IWG provides that choice and serves the whole world of work: Regus, Spaces, No18, Basepoint, Open Office and Signature. It creates personal, financial and strategic value for businesses of every size, from some of the most exciting companies and well-known organizations on the planet to individuals and the next generation of industry leaders. All of them harness the power of flexible working to increase their productivity, efficiency, agility and market proximity. www.iwgplc.com.