The International Workplace Group (IWG) is setting its sights on Arizona, with a substantial expansion plan.
According to a report published by The Real Deal, the coworking provider announced the launch of 15 new coworking spaces across Arizona. The strategic move adds to IWG’s existing portfolio of 46 Arizona-based offices including offerings under its Regus, HQ, and Spaces brands.
Notably, the expansion also includes the company’s largest Spaces location yet, spanning 25,200 square feet in Goodyear’s GEN1 at GSQ building, according to The Real Deal’s report. Other key additions include sizable spaces in Mesa and Casa Grande, AZ. Two spaces are already operational in Phoenix, with 11 more on the horizon.
According to a recent study published by Coworking Cafe, Phoenix boasts the fifth-lowest average monthly subscription for open workspaces nationwide — at $119. Affordable prices, plus the rising demand for flexible workspaces in the state were cited as driving forces behind the aggressive growth strategy.
This move also coincides with a broader shift in the workforce towards hybrid and remote work environments. New spaces are being established across the U.S. to cater to this rising demand. Notably, IWG’s expansion stands in contrast to other firms like WeWork, which downsized in Phoenix after bankruptcy. This divergence suggests IWG’s confidence in the Arizona market and its potential for growth. Additionally, IWG isn’t the only WeWork competitor capitalizing on Arizona’s coworking market. It’s reported that Utah-based Kiln and Texas-based Lucid Private Offices are also expanding their presence in The Grand Canyon State.
