IWG: Employers Who Adopt Remote/Hybrid Models Cut Real Estate Costs by 50%

New data has put a price tag on how cost-effective it can be for companies to switch to remote or hybrid models of work. A recent Fortune article evaluated how much businesses save by minimizing their office spaces. Mark Dixon, Founder and CEO of International Workplace Group (IWG), a flexible workspace franchise, estimates companies can cut real estate costs by opting for a hybrid working style. Global Workplace Analytics calculated that enterprises could save up to $11,000 for each employee working remotely for two or three days of the week.

Tech giant Cisco, which has been hybrid for the last half-decade, is a great example. The company has cut 50% of real estate, saving about $500 million.

The cost savings result from reduced rent and qualities like increased productivity, lower absenteeism and less turnover, which have been shown to come from flexible work environments. Pre-pandemic, most major companies in America dedicated about 3% to 9% of their budgets to real estate. The standard for office spaces was about 150 square feet of room per employee.

But now, 74% of Fortune 500 CEOs report that they plan to or have already reduced their company’s office space.

IWG is poised to be the solution for businesses seeking flexible working environments. The franchise serves 83% of Fortune 500 companies, and its model has been rapidly growing in popularity. There are now more than 3,000 IWG locations in over 120 countries around the globe.

And as demand for flexible working environments continues to increase, the executives at IWG are working hard towards a goal of opening 10,000 locations in the United States alone.

The company offers partnership agreements for commercial real estate owners, developers and franchisee investors to easily turn empty space into a revenue-generator by converting it into a busy flexspace with private offices, co-working areas, collaboration spaces, business lounges and meeting rooms.

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.