IWG, Parent of Regus, Spaces, and other Flexible Workspace Brands, Targets Florida for Expansion

International Workplace Group (IWG), the 3,300-location flexible workspace global powerhouse parent of Regus, a professional workplace brand; Spaces, a creative workplace brand; HQ, a hassle-free workplace brand; and Signature, a luxurious workspace brand, has announced plans to increase its Florida footprint. Florida growth is a part of the brand’s plan to add 1,000 more locations under agreement next year, with the majority coming from landlords, building owners and institutional developers who want to fill empty spaces and generate revenue and operating income.

Eight IWG flexible workspaces are already operating in Tampa, Florida, and the Tampa market can sustain over three times the units without nearing a saturation point. After noting this success and inking new deals for Gainesville and Clearwater, Florida, other similar markets are in target.

“This strategic plan of adding 1,000 locations is really critical because we’re looking to deploy flexible workspace solutions, not just to continue our growth in the major urban markets, but beyond them,” explained Wayne Berger, CEO of IWG The Americas. “We’re very well positioned to grow in the suburbs, neighborhoods and boroughs. The small towns, the villages and the tertiary markets. People want the ability to live in a 15-minute city.”

Flexible workspace demand

The idea of a “15-minute city” is becoming more and more attractive to working professionals who realize how their days open up — without losing any time for work — when their commute is greatly reduced.

The demand for flexible work options was steadily increasing before the pandemic, and the change in work models accompanying COVID-19 only spiked the demand within the industry. Now, there are less-urban communities that find themselves seeking exciting, flexible workspace options.

As expansions within Florida continue, communities like Pasadena Hills, Cheval, Gulfport, Palmetto, Callaway and Tallahassee are prime spots for Regus workspace locations.

Florida expansion plans

“We are continuing to grow in markets like Gainesville, Clearwater, and other tertiary cities that have very little flex space but have a population base that needs it,” Berger said. “It’s actually quite significant.”

As IWG locations are established in less assuming communities, larger groups of people will have access to the “15-minute city” that Berger references. In larger cities, it is commonplace to be within 15 minutes of wherever you need to go. However, when moving toward tertiary cities, travel begins to take longer.

In some cases, working professionals spend upwards of two hours every day just getting to and from their workplace. With solutions like IWG flexible workspaces, professionals in smaller communities can access the social aspect of work that a traditional office provides in a varied, flexible and close-to-home model.

Investment opportunities

IWG has opportunities for a variety of investors, though it is targeting traditional building owners at this stage in its growth. For a landlord with open space and a history of working in capital leases, partnership with IWG provides a level of flexibility and increased revenue that was previously unavailable.

When a landlord partners with IWG, they invest the capital necessary to convert the existing space into an appropriate IWG space, and the brand executes marketing, sales, staffing and more.

“We staff the team, we deploy all of our resources and technologies, and we place it onto the world’s largest global network that drives over 1 million inquiries every single year,” Berger explained. “We drive revenue by offering that as a flexible workspace location.”

Companies are looking to sign more flexible contracts, allowing their employees access to workspaces in a variety of areas. With IWG, these companies are not locked into a 10-year-plus lease in a single office space. They instead have the option to transfer the agreement to a different IWG space, allowing for the flexibility that both leadership and employees seek. Because of this, securing leases is a much easier process.

As this demand persists, landlord partnerships with IWG create an opportunity for investors to leverage high demand and an innovative model with the backing of a well-established partner.

IWG also offers partnership opportunities to institutional investors and business investors.