Major office space provider IWG has started adopting the franchisor model, pioneered by fast-food company McDonald’s, in its effort to edge further away from WeWork.
What makes flexible workspaces so enticing?
The global workplace is simply an area where organizations carry out everyday activities to operate its business. Now, flexible workspaces are slowly taking over what we once understood of offices in terms of layout and design.
International flexible workplaces are anticipated to grow thanks to its adoption from the technology, media and advertising industries.
Enterprises and corporates are also finding flexible workspace outfits to suit their financial and flexibility needs. Flexibility, in particular, draws clients in by allowing a balance of lifestyle and work.
Still, flexible offices do not guarantee data safety and have reduced profit margins due to operational costs. Additionally, since these spaces are open to people from various sectors of life, there is a possibility of a cultural clash.
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Despite this, the market is bound for growth with innovation and technological advancements on its side.
North America leads the market for flexible workplaces and is expected to do so until 2025. This is mostly likely due to its infrastructural capabilities and housing prominent corporations.
Key players in the market include WeWork, Awfis Space Solutions, Servcorp, and many others.
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America’s malls are becoming more and more vacant, but coworking companies are taking advantage of these empty spaces to expand their services in a nonconventional way.
Flexible workspace provider Knotel has once again expanded its presence in central London, signing three new deals across the city totaling 40,000 square feet.
Office Evolution, the nation’s biggest coworking franchisor, will expand its footprint in Mount Pleasant as it continues to cater to small business owners in the area.
Although coworking spaces are often categorized as servicing major cities, tier II cities are having their moment as many startups continue to flood into these areas.
Amy Nelson, CEO of The Riveter, has made it her business to promote inclusivity of women in professional settings while also providing men tools to value gender equality.
A survey of 1,000 WeWork members found that, while some use the space out of convenience, others find the culture to have an effect on their professional identities.
While WeWork is expected to file for an IPO this year, its valuation and recently announced losses have left investors worried about the sustainability of the company.
IWG has started rolling out a franchise model, similar to that of McDonald’s, enlisting franchisees to take the reins in subleasing Regus and Spaces offices to companies.
Chicago-based Novel Coworking has purchased Denver’s 195,753 square foot, 17-story boutique office property Trinity Place in Uptown that is currently 65% leased.