Did COVID-19 Accelerate the Workspace Shift for Business Investors?

Although the idea of “flexible work” has become essentially ubiquitous following the pandemic, the actual model has been around for quite a while, thanks in large part to International Workplace Group (IWG) the 3,300-location flexible workspace global powerhouse founded in 1989. IWG is the parent of Regus, a professional workplace brand; Spaces, a creative workplace brand; HQ, a hassle-free workplace brand; and Signature, a luxurious workspace brand.

“Prior to the pandemic, we were living in an era where more and more people — workers and organizations — were moving towards flexibility,” said IWG CEO of the Americas Wayne Berger. “Back in 2019, over 50% of the world’s workforce was working from somewhere other than a traditional office at least one to two days a week.”

So, how much did COVID-19 actually accelerate this flexible work trend? According to IWG’s lead generation, quite a bit. The pandemic accelerated requests by 30%, offering 1.3 million requests annually.

“When the pandemic first hit, the first questions building owners had were: How do we make sure air systems are clean? How do we make sure everyone is safe? That is still a critical requirement, but the conversation has shifted towards flexibility,” Berger said.

Today, this mass adoption of flexibility has resulted in 88% of organizations instituting flexible working policies and 90% of workers demanding flexible models, Berger says. And that trend shows no signs of slowing down anytime soon.

“Many people thought we were going to go back to the way we worked pre-pandemic,” said Berger. “But that isn’t true. People don’t want to waste time and money aimlessly commuting to an office, regardless of what they have to accomplish. People really value their time, both at work and outside of work. No one wants to go back.”

Moving forward, organizations’ decisions are going to be based on three critical factors, Berger says: How they attract and retain employees, how they can focus on the environment and how they can become more dynamic.

“Flexible working is better for people, better for profits and better for the planet,” Berger said. “People can work how they want to work, organizations can raise profit by rationalizing their commercial real estate portfolio and the planet benefits because cutting down on commutes is a very powerful way to reduce CO2 emissions and achieve sustainable goals.”

But the pandemic didn’t just accelerate the hybrid trend for employees and employers. As a real estate investor or landlord, this complete shift is not something to ignore, Berger says. With employers embracing flexible models, the need for more traditional capital leases simply is not there and vacancy rates are increasing across the country.

By partnering with IWG, the building owner can invest in their existing space to convert it to an IWG space. IWG’s best-in-class technology, networks and marketing allow it to promote the space three to five months prior to the expected opening date, yielding an immediate return on investment for the partner.

“Suddenly, there is a real dramatic shift in how companies are looking at where they deploy their workforce and what working looks like every day, and in turn, savvy investors are finding ways to meet that demand and drive long-term returns,” said Berger. “Building owners can take a percentage of their portfolio, partner with IWG, invest capital to convert that space to a flexible workspace and start earning income from day one.”

Learn more by watching the full webinar between 1851 Franchise Publisher Nick Powills, IWG Regional Director of Partnership Growth Ryan Semler and IWG CEO of the Americas Wayne Berger.

For partnership opportunities, visit: https://www.iwgplc.com/en-gb/develop-a-location.