November 01, 2023 – IWG, the world’s leading provider of hybrid work solutions, has announced that it has added 612 new locations since January 2023. A substantial 95% of these new locations have been established through managed partnership agreements, aligning with IWG’s capital light strategy. This accelerated growth is fueled by the surging demand for flexible workspaces and the rising adoption of the hub-and-spoke office model. IWG is working with both 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.
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 Harsh Lambah, Country Manager India – Vice President – Sales, IWG, remarked, “The paradigm shift towards hybrid working has led to a surge in demand for flexible workspaces. IWG’s extensive network of spaces caters to this evolving need, providing professionals with a flexible and productive work environment.”
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 expanding its network locations deep into the heart of the communities where they are needed. 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 India market and across the globe, with IWG’s asset-light strategy meaning the company can expand and adapt quickly to meet this demand.
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.
IWG’s partner locations swiftly transition from concept to full operation within just 10 weeks. The partnership model offers consistent monthly revenue, eliminating the complexities of lengthy renewals and vacant periods associated with single leases. The flexible workspace sector is projected to grow by an astounding 600% by 2030. Remarkably, job searches for ‘hybrid’ on Indeed surged by an astonishing 6,531% year on year in 2022. IWG’s adaptable solutions position property owners strategically to capitalize on the enduring trend of businesses embracing hybrid working.