With 30 years’ experience, IWG’s status as a coworking giant is set to help investors too
No one can predict the future. But we can prepare for it – in business at least – and a way of doing that is by diversification. Spreading financial risk across a range of assets is a sound strategy because, as the saying goes, it’s about not putting all your eggs in one basket. So, if you’re looking to future-proof your assets, where should investments be made?
One sector worth thinking about is flexible workspace. With the rise of the flex-worker and an economic downturn on the cards, companies are less keen to invest in real estate that locks them into a lengthy lease and a fixed abode. What this means for the investor looking to protect their wealth is that coworking space could be one of the safer bets for 2020.
According to property firm Jones Lang LaSalle (JLL), the use of flexible office space is set to increase by 30% per annum for the next five years. Already, 50% of workers do their jobs remotely for at least part of the week. It’s not hard to see why: by cutting down on the commute, remote working is better for employee work/life balance and better for the environment.
Darin Harris is the CEO of IWG brand Regus in America, and he’s confident that flexible office space is here to stay: “The operating model is proven, demonstrably successful and opportunities for growth are significant in not only major markets across the country such as New York City and San Francisco but secondary and tertiary markets as well, especially with brands, such as Regus, that are globally renowned and therefore benefit from good brand equity.”
The popularity of shared offices is a trend that’s unlikely to be slowing down anytime soon, then. So it stands to reason that becoming a franchise partner – whether you have buildings already or whether you’re coming to the industry completely fresh – can make for a solid investment option.
“In fact, the franchise model can be a strong investment opportunity during an economic crisis, as most established concepts possess strong brand power, awareness, a built-in and successful business model, and buy-in from the general population,” adds Harris. This is certainly true of IWG, which has 30 years of experience in flexible office space and comes with a full complement of back-office infrastructure to manage and maintain properties.
“During times of economic hardships, it is not unusual for the masses to invest their time and money into concepts that are known to be tried and true,” Harris says. “In fact, Regus created the flexible workspace concept and has remained the industry’s global leader since its inception 30 years ago, despite economic turbulence.”
Discover how IWG's suite of coworking solutions could work for you
