IWG is reporting major growth in 2023, as the coworking operator added 612 new locations since January 2023.
According to a recent article published by Business Matters, this expansion is largely being driven by property owners eager to capitalize on the surging demand for hybrid working environments. With a decline in the demand for traditional office spaces, property owners have turned to coworking spaces, such as those offered by IWG — which includes brands such as Regus, Spaces, HQ, and Signature.
“Today, we are continuing to witness the unprecedented rise of the Great Lease Resignation,” Mark Dixon, the CEO of IWG stated. “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.”
Two main real estate trends are cited as driving the demand for hybrid working:
- More companies are reevaluating their property portfolios, downsizing in major city centers, and replacing long-term leases with more flexible spaces.
- Demand for workspaces located in suburban neighborhoods, closer to where employees live, is on the rise.
A significant portion of IWG’s new locations are located in suburbs and smaller towns, according to Business Matters.
Even with the return to office calls from major companies in 2023, the demand for hybrid work environments has persisted as well. As companies and employees recognize the benefits of flexible work opportunities, and as property owners see the potential for growth, the trend is likely set to shape the workforce for years to come.