Global coworking and flexspace provider IWG’s franchise model is a clear frontrunner for commercial real-estate investment opportunities
The 2010s were a seismic decade for the way we think about office space. Thanks to the Fourth Industrial Revolution and the rise in flexible working, the concept of the office has been completely reimagined from a cubicle-led structure to a community environment that prizes collaboration and openness. Following in the lead of progressive companies like ad agency Mother, whose East London HQ espoused the virtues of hot-desking and a more task-led approach to work, office-sector changes have spread across the world – and the world of work – and crowned the coworking model as the king of commercial real estate (CRE) in the process.
As we enter the 2020s, the trend shows no signs of slowing down, with CRE specialist Jones Lang LaSalle (JLL) predicting that coworking space will account for 30% of all US office space by 2030. Given that it currently stands at around 5%, there is huge scope for entrepreneurs both new to and established in the industry to take advantage of this growing popularity for the new breed of office space.
Part of this popularity is thanks to the Millennial workforce, the largest demographic in the global workforce and one that’s not going anywhere soon. For them, it’s all about a better work/life balance and a more collaborative environment in which do their jobs. In recognition of this, both small businesses and large corporates have supported the shift, with companies like Microsoft and Nike devoting entire divisions to the coworking model.
As an investment opportunity, franchising workspace with the help of an experienced partner can make for a sure bet in uncertain times. And as the global leader of flexible workspace solutions (IWG companies help more than 2.5m people and their businesses to work more productively in 120 countries), there’s a huge opportunity for entrepreneurs to franchise their brand, consolidate it under an IWG brand, or even launch a new one – and serve the local demand for flexspace. With over 30 years of experience behind it, IWG can offer franchise partners a readymade package that includes advice on the best locations to open workspace centres; support with finding new buildings in the area; structuring floor plans to maximise revenues; IT and marketing services; and regular performance reviews with experts to track progress. It’s also worth noting that in an uncertain economic climate, flexspace is a popular choice for businesses that night not wish to commit to the long term.
Of course, this is a trend that’s not just restricted to the US: a walk around most major cities and a growing number of so-called “second-tier” towns shows that (and smaller destination that currently lacks a coworking solution might well provide the opportunity for a franchise partnership). As the new wave of workers continue to assert itself about how, when and where it wants to work, IWG’s knowledge, tools and experience can help turn an investment into a profitable flexspace with strong returns and plenty of potential for further growth.
