What’s going on:
Workspace provider IWG is reporting a record first quarter – anticipating a 25% rise in group revenue and a 22% increase in system-wide revenue in the first quarter of 2023, according to Alliance News.
“In the first quarter of 2023 we continued to deliver record levels of revenue,” Chief Executive Officer Mark Dixon said. “I’m pleased to see that we are combining this with margin expansion, enhanced cash flow generation, and building on our capital-light growth strategy.”
Why it matters:
IWG remains optimistic for the remainder of 2023 as it has adapted to the growing desire for businesses seeking flexible workspaces. It is positioned to take advantage of the growing interest in suburban areas – as more businesses adopt hybrid work models in the post-pandemic era.
How it’ll impact the future:
IWG’s strategic pricing policies have reportedly kept pace with inflation, as well as the change in occupancy rates. report from IWG arrives during a tough period for office-focused property firms grappling with unsteady valuations and tenants who are re-evaluating their real estate needs amidst a gloomy economic forecast. This may trigger other shared workspace providers to change their sights from urban-focused real estate ventures to more suburban areas.