Flexible workspace specialist IWG has said it anticipates 'record network growth in 2024' due to demand for its services. The flexible workspace sector is projected to grow by 600% by 2030, the business reported.
According to IWG, property owners are choosing to partner with the firm's hybrid working platform in increasing numbers, across a slate of brands that includes Regus, Spaces, HQ and Signature.
IWG now has approximately 4,000 locations in more than 120 countries, but the potential for further growth is exponential with an estimated 1.2 billion white collar workers globally and a total addressable market of more than $2 trn (€1.9 trn), the firm said.
Last year, IWG added 867 new locations to its network, up from 462 in 2022. This comes as IWG posted its highest ever revenue in its 35-year history, up to $4.27 bn over the course of 2023, a 10% increase compared to the previous year.
Hungarian expansion
IWG has also grown significantly in Hungary. The company now has 12 centres in Budapest, with seven new deals recently signed for different locations in the capital, of which six will open this year and the other in 2026.
IWG also signed another seven deals for new locations outside of Budapest, including one in Szeged, one in Pécs, two in Debrecen, one in Budaörs, one in Biatorbágy, and one in Szentendre.
IWG will open 13 new locations in Hungary in 2024, and the total number of locations will reach 25 by the end of this year. In the capital, the number of locations will be 18 by the end of 2024 and IWG also plans to develop another 10 locations in Budapest, totaling 44 centres in Hungary in the nearer future.
Significant demand
Growing demand amongst property owners and investors to open a new IWG location or convert an existing one is being driven by two distinct yet complementary real estate trends, according to the firm.
First, companies are reappraising their property portfolios and downsizing in city centres, replacing long, restrictive, and expensive leases with flexible space with operators like IWG. Second, they are taking on flexible workspace in local neighbourhoods, closer to where their people live and want to be, as part of the increasingly popular ‘hub-and-spoke' office model.
The majority of IWG’s new locations are in the suburbs, smaller commuter towns and cities. These even include towns with populations as small as 5,000 - 10,000, which are all seeing the strong demand for hybrid working solutions. The group is expanding its network locations deep into the heart of the communities where they are needed.
Mark Dixon, IWG Founder and CEO said: 'At IWG, we have accelerated our capital light growth strategy allowing us to capitalise on the growing pipeline of property investors seeking to maximise their returns by partnering with us.
'We signed twice as many agreements 2023 as we did the previous year, and we continue to accelerate further. The IWG network is growing fast to meet the significant demand for high-quality flexible workspaces on people’s doorsteps, as hybrid working continues to become the default way of working for white collar workers.'
