Embracing the Future of Work: IWG's Expansion in Central and Eastern Europe

In recent years, workplace standards have transformed alongside the rise of flexible working spaces, and the shift is evident in communities worldwide. IWG (International Workplace Group), the largest provider of workspace solutions in the globe with over 4000 locations across 1200 cities, is seeing growing demand for flexible spaces and ongoing growth in Central and Eastern Europe.

In a recent webinar hosted by 1851 Franchise, CEE leaders shared more information regarding the future of the office; how properties can be transformed to better serve people, the planet and profitability; and how entrepreneurs can benefit from the IWG network.

The Transformation of Central and Eastern European Workplace Culture

Central and Eastern Europe is one of many regions that has seen major shifts in employees’ expectations of their employers and working models. Pawel Ornatek, Managing Director of IWG Poland, shared valuable insights on the evolution of the workplace and hybrid working models.

Ornatek, who has been with IWG since 2014, explained that the flexible model has existed far longer than it has been popular. IWG has been developing the market for over three decades, proving that there has been a longstanding demand for flexible work, but the COVID-19 pandemic allowed even more people an opportunity

“This is an extremely exciting time for us; we are seeing an explosion of a hybrid model of work, which is the preferred way of working these days for both companies and employees,” said Ornatek. “We now see that more than half of employees say that they would quit their current jobs if they are not allowed to work on the flex model, and more than 77% say that their next work must be closer to home and must offer flexible work.”

In Poland, between 2.6 and 4% of office spaces are already designated as flexible spaces. By 2024, this number is expected to climb to 6%, and this growth is in line with larger global trends projecting that between 20 and 30% of office space will be flexible by 2030. IWG, specifically, doubled its presence in Poland between 2014 and this year, now with 30 centers across the country with plans to add another 15 in the near future.

As IWG works to expand in Central and Eastern Europe, it sees strong potential to grow in areas proximal to central business districts, offering a solution for professionals who are fully capable of working flexibly and have realized the benefits of avoiding hours spent commuting each week.

This ongoing demand and positive outlook is driven by an overarching change in culture that will not only benefit employees but can support the development of entrepreneurs through partnerships with IWG.

IWG Provides a Supportive Platform for Entrepreneurs Looking to Transform Empty Space

In many markets, as need and demand has increased, more flexible workspace locations are required, particularly outside of more traditional city center locations. IWG has developed a platform that supports partners in addressing this need with the support and expertise of a well-established global brand.

“The business seems to be easy,” said Micha? Dorszewski, Regional Director of Partnership Growth in CEE, “but that is because we have made all of the mistakes and developed the know-how and platform necessary to make it easy and profitable. And now, we are sharing that through the partnership program.”

Dorszewski explained that IWG is working to develop the opportunity across the 12 countries included in the Central and Eastern Europe market, offering multiple advantages to business investors who are looking to develop empty space, create a more upscale offering to compete with the market and even weave flexible work opportunities into their portfolio alongside traditional leases for more diversification.

To support entrepreneurs in growing alongside market demand, IWG sits down with every prospective investor to discuss the financial model, appropriate floor plans, design and construction plans, sales and marketing to ensure they have all of the resources necessary to build, launch and operate a successful flexible workspace.

“We have the market and the platform, you have the building and assets, and we, together, create the product which is in demand,” added Dorszewski. “The shift has happened, and the time is now. We are very aggressive in our approach to develop the market.”

The Future of IWG in Central and Eastern Europe

As demand continues to climb, IWG is interested in providing the much-needed resources local professionals seek. With multiple IWG brands for businesses to choose from depending on their needs and decades of experience, the team can work with partners in multiple market levels with a range of demand and building types to create a successful flexible workspace.

“When we open new centres in cities around the country where there were no flex opportunities, they are very happy,” said Károly Mózes, Partnership Business Development Manager. “We see positive feedback from our brokers and the demand to finally have a centre.”

“So far, we have just over 100 centres in the Central and Eastern Europe area, but in the next three to five years, we plan to build on the demand in the industry to add 500 or 600 more across CEE,” added Dorszewski. “The market is huge, but we are still accelerating.”

Though demand is persistent, IWG is committed to strategic growth throughout CEE that will include careful analysis of high-demand markets and partnership with investors who are interested in developing tailored flexible workspace solutions with the help of the best brand in the business.

With IWG’s proven business model and the ever-growing demand for flexible workspaces, investors in the CEE market have a timely opportunity to turn their existing spaces into profitable flexible workspaces in just 12 weeks. By partnering with IWG, investors can adapt to the changing dynamics of office space demand, add value to their properties and monetize empty or aging spaces, all backed by the expertise of a global flexible workspace operator.

For more information, visit iwgplc.com/develop-a-location.