Regus’s new report finds strong business case for investing in flexible office space beyond Australia’s major cities
For those seeking fresh franchise opportunities in Australia in 2020, new research highlights why investing in flexible workspace (flexspace) is not only a smart move, but describes the positive social, economic and environmental benefits of doing so.
The report from Development Economics commissioned by Regus – the first of its kind, measuring the socioeconomic impact of the flexspace sector – reveals there’s a strong business opportunity to invest in flexible workspace franchises outside metropolitan cities in nations like Australia.
The research finds that the global flexspace industry will contribute AU$375 billion to smaller towns, cities and suburbs over the next ten years. The report calculates that an individual flexible workspace location generates 218 jobs, and adds an average of over AU$24 million per year in Gross Added Value to its local area, as a new pool of local professionals work and spend locally on commodities and services.
There’s also a strong environmental case for investing in more flexspace outside Australia’s most populated cities. By helping people cut out their commute to city centres – by creating workspace that’s closer to home – the average flexspace location saves 118 metric tonnes of carbon. Globally, this adds up to 2,560,000 tonnes a year – the same as 128,000 flights between London and New York. What's more, by empowering people to work closer to where they live, flexspace helps people strike a better work/life balance, fulfil their familial duties and feel more productive by using their time more efficiently. So potential franchisees seeking a sustainable business opportunity, – one that encourages people to drive less and use less resources – that also benefits people’s wellbeing, should feel enthused by the alternative lifestyle and workspace model flexspace offers.
Australia is one of the nations where the flexspace sector is set to enjoy healthy growth over the coming decade. The Development Economics research forecasts that flexspace will bring more than AU$11 million in aggregate GVA to the Australian economy by 2029, and potentially create an additional 80,412 jobs by the same year.
Those seeking franchise opportunities outside metropolises would be wise to reap the rewards of the flexspace industry as demand continues to surge in the nation’s regional areas.
With more than 30 years’ experience of operating flexible workspace internationally, Regus’s parent company, IWG is the world’s leading provider of flexspace, and is listed on the London Stock Exchange (IWG PLC). Through its franchise platform, IWG teams up with local franchisees with relevant experience and expertise to expand the IWG’s footprint into new regions that are enjoying healthy demand. Currently there are 3,400 IWG Centres internationally, and part of the brand’s growth strategy is to launch outside of capital and major cities. Instead, the goal is to create workspace closer to where employees and business owners actually live – which has been proven to boost productivity and wellbeing, and save companies money and resources.
IWG’s flexible working brands, which includes Regus, Spaces and HQ, also offer meeting rooms for hire and virtual office services in which creates diverse income streams. IWG’s franchise platform empowers local partners to capitalise on the true potential of flexspace, and supports them to make new locations a success.
The healthy projected growth of the flexspace industry, combined with the strength of demand in Australia’s regional areas, and the positive socioeconomic impact the sector brings – both locally and globally – creates an attractive prospect for investors eyeing the sector with interest. What’s more, with IWG’s franchise offering, they can rest assured they are working with a reliable partner, with a proven track record for international success over decades – and a sensible strategy for the future.
Find out more about starting a flexspace franchise in Australia
