What’s going on:
IWG is launching a 5,500 sq. ft. flexible workspace in Battersea as part of its Regus brand. The move is part of the company’s broader strategy of establishing a series of “15-minute cities” across London, according to the Evening Standard. The initiative is designed to create urban areas where everything a person needs, including their workplace, is within a 15-minute reach of their home.
The company’s announcement comes at a time when there is a reported surge in demand for suburban workspaces and a cooling of demand in traditionally popular locations like London’s city center. The firm intends to introduce up to 1,000 new locations to its infrastructure this year to cater to the increasing population of hybrid employees in the city.
The Battersea office is set to open in the fourth quarter of the year.
Why it matters:
IWG’s initiative reflects the increase in demand for hybrid workspaces and the shift away from traditional office spaces. These flexible workspace trends impact the commercial real estate market, local economies, and the way people live and work.
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IWG’s recent financial results, with a 14% rise in revenue and a 37% increase in gross profits in the first half of 2023, demonstrate the profitability of its expansive approach. IWG’s approach capitalizes on the concept of the 15-minute city by addressing demands for more convenient and localized work arrangements.
How it’ll impact the future:
IWG’s expansion in London and the push for 15-minute cities is indicative of how the future of work is evolving towards more localized, flexible, and hybrid models. As more businesses cater to the hybrid and remote workforce, it’s possible markets will see increased investment in suburban and neighborhood workspaces. Increased hybrid work arrangements and localized workspaces would also likely reduce commuting times and alleviate traffic congestion.
