The appeal for flexible workspace continues to grow as IWG signs its first Australian franchise deal with Queensland convenience store operator
Amid soaring demand for flexible office space, owners of Australian convenience and service station franchise NightOwl Convenience, Adam and Katrina Adams saw an opportunity to give their business partners access to a global brand in a growing industry.
“The appetite for flexible and coworking spaces was booming in Australia pre-Covid and the pandemic has only increased demand,” says Adam Adams, CEO of the Adams Group. “There is a clear gap in the market for a high-quality product in Queensland and our goal is to partner with Regus, the global leader, with a strong brand, professional infrastructure and worldwide network to fulfil this need.”
The partnership with the Adams Group, whose NightOwl Convenience franchise has more than 75 locations across the country, marks IWG’s first franchise deal in Australia, and will see the Regus brand add 10 centres in Northern Queensland, including the Sunshine Coast, Townsville, Cairns, Noosa, Mackay, Rockhampton, Gladstone, Bundaberg, Hervey Bay and Airlie Beach.
“The franchise concept offers our partners the unique opportunity to make an attractive, high-yield investment with the know-how of the market leader and their local expertise,” says Mark Bhardwaj, IWG’s Head of Partnership Growth in Australia and New Zealand.
“With a strong entrepreneurial spirit and a proven track record in the franchise space, the Adams Group is an ideal partner to grow the Regus brand in Queensland. We are actively looking for franchise partners to capitalise on the growing demand in the flexible workspace industry outside the core CBD areas and are confident in adding another 10 to 20 locations to the Australian footprint by the end of 2020.”
IWG currently operates in 77 locations in Australia, including the addition of Spaces Riparian Plaza in Brisbane and Spaces 60 Martin Place in Sydney in the first half of 2020.
Country Head for IWG in Australia Damien Sheehan says that the new locations have resulted in positive growth for the group.
“Both locations have proven to be successful additions, with strong demand for a high-quality product,” he says. “In October, we will be adding a third location with Spaces Two Melbourne Quarter, located in the Docklands, which will add a further 12,000sqm+ across our growing portfolio.”
In recent years, the flexible workspace market in Australia has rocketed, with the 2019 Australian Co-working Market report showing a 41% year-on-year increase in the supply of flexible workspaces. Before the pandemic, flexible working as a real estate investment among corporate businesses was on the rise, with companies actively seeking engagement on the topic as a result of evolving work cultures.
As an investment, flexible space promises low costs, minimal staffing and strong customer retention, with fewer recurring customers needed – due to its contract-based model – in order to turn a healthy profit.
IWG has more than 30 years of experience of launching and running flexible spaces all over the world, and a range of established flexible office and coworking brands to match different demographics and local business needs.
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