IWG: Turning Empty Spaces Into Profitable Places

International Workplace Group (IWG), the world's largest provider of flexible workspace solutions with more than 3,500 locations in over 123 countries worldwide, recently released a whitepaper about how the global commercial real estate market is set for revolutionary change following the move to a hybrid work model post-COVID. According to research by IWG, workers are now four times more likely to choose an office close to home than in a city center. Work-life is moving away from long commutes into central business districts and out into the suburbs, small towns and even the countryside.

“Over the last few years, we’ve seen a seismic shift in the way that people want to live and to work,” said Thomas Sinclair, Group CIO and Global Head of Network Development, IWG. “That means a fundamental change in how people use space – and building owners now have to navigate this new landscape. The growth of hybrid working has delivered a once-in-a-generation moment.”

IWG points out that companies simply need less space nowadays, which means they are terminating their long-term commercial office leases at an unprecedented rate, often replacing them with shorter-term agreements or new arrangements with flexible workspace providers such as IWG. Mark Dixon, Founder and CEO of IWG, has termed this the “Great Lease Resignation.”

Flexible workspace solutions

In response, landlords and building owners would be wise to build flexible workspaces close to where people live, and IWG is the perfect partner to help do so. There are currently around 3,500 locations in the IWG network, which includes unique brands such as Regus, Signature, Spaces and HQ, covering every different workstyle.

Best of all, the spaces that are required to meet the increased global demand for flexible office space don’t have to be existing offices — IWG has a hybrid work solution for every type of building and location, whether that’s a retail space, a light industrial space, a hotel or anything else.

“Most landlords understand what flex means, but they don't have the capability to actually put it into practice,” adds Sinclair. “They’re not set up to do it, so they need to outsource the solution. The question is who to work with as partners, and typically the thought process is that they should work with the global market leader – which is IWG.”

Partnership options available

There are two main options for building owners who want to take this opportunity. One is a franchise partnership, with a building owner operating an IWG-branded flexible workspace with the help of IWG’s world-class operational support and a global sales platform that generates more than 100,000 inquiries every month. And the other is a managed partnership, where IWG operates a center on a building owner’s behalf.

“There’s no other provider who can work at this kind of scale or with this level of expertise,” says Dixon. “For several decades, we’ve been at the forefront of the hybrid working revolution, empowering people to work more productively and conveniently. More and more people want to work closer to home, and together with great partners around the world, we can make their dreams a reality.”

The whitepaper details six impressive case studies of previous examples where IWG has helped landlords and institutional investors turn underperforming real estate into a bustling flexible office space. The stories include transforming a landmark building in England, a building in a picturesque Italian city, a city center retail space in South Korea, a business and leisure center in Malaysia and more.

In conclusion, Dixon points out that IWG is excited to continue partnering with landlords and institutional investors around the world to turn empty or underused spaces into thriving, flexible workspaces.

“For building owners confronting dwindling occupancy, this is a chance to not only turn the numbers around but also to play a role in this world-changing transformation,” says Dixon. “It’s an amazing opportunity.”