Flexi-Time: IWG Has The Flexible Workspace Market Cornered Flexible working is growing rapidly, with IWG's continued expansion across its operating brands, seeing another 156 new locations opening in 34 countries around the globe.

Flexible working is growing rapidly, with IWG's continued expansion across its operating brands, seeing another 156 new locations opening in 34 countries around the globe. From Perth in Australia to Paris in France, the first half of 2019 has seen more rapid growth from IWG's flexible workspaces brands like Regus and Spaces.

A report by consultancy firm The Instant Group found demand for flexible workspace globally increased by 19% last year, stating that the growth in the supply of flexible space was "the number-one story' in commercial property markets around the world.

John Williams, head of marketing at The Instant Group, puts the growth down to two factors: a change in how large companies were operating –specifically in relation to flexible working practices– and changes to the nature of the workforce itself. He says: "It's a mixture of the increase in the contingent workforce –consultants, one-man bands, and startups– and the fact that larger companies now work in a more agile way. Businesses are now keen to offer their employees more choice in where and how they work, and digital technology enables them to work anywhere."

A reluctance by major companies to sign long-term lease agreements in order to stay financially flexible was also a driver. "Corporates are less keen now on signing lease agreements for the long-term as business cycles have become shorter since 2008, and companies have had to become more agile to adapt to this change. This means being able to grow, and contract, quickly rather than be tied to one space for 10 years or more."

Despite the rise in flexible workspaces, much of this footprint is still concentrated on the world's major "global cities," according to the report, with New York and London taking up the lion's share of such available sites. IWG's portfolio of operating brands, with Regus at the forefront, is continuing to expand into these major cities, but also into other growth territories. Since the turn of the year it has established new office space in places such as Braga, Bilbao, Rennes, Gdansk, or Huntingdon, in Cambridgeshire.

When it comes to the nature of the workforce driving the change in working practices, many might perceive that it centers on the creative sector, with visions of young app developers in casual clothes looking to avoid what they might feel to be a more traditional, perhaps even "stuffy," 9-to-5 office culture. But, according to Williams, this is not what their research has found. "There is a misconception that it is millennials who work in the creative or tech industries that are driving this change. This is not the case at all," he says.

"We find in the US and UK, it is actually financial services and professional services organizations who are using flex space more than tech companies," Williams says. "It is larger companies taking bigger requirements of flexible workspace that are among the fastest growing segments of the flex workspace sector." Although relatively nascent as a trend in the commercial rented sector, with 5% of the total office market, Williams suspects flexible workspace will make up 30% of the market in the next decade.

So, now is the perfect time to capitalize on this new business opportunity. IWG, the global leader of flexible workspace and coworking, has launched its franchise offering, based on its proven business model, over 30-year experience and leading global brands like Regus and Spaces. It's an opportunity to diversify away from traditional franchise industries while benefiting from strong cash returns, with access to over 2.5 million customers, and rely on a strong partner to maximize your investment.

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