An inevitable consequence of the pandemic in the ‘new world of work’ is the shifting preference, among business owners, towards workspaces that have the ability to adapt to the fast-changing needs of companies. Real estate specialist Knight Frank puts it succinctly by describing flexible office space as “a good tonic for uncertain times”.
But what exactly are the major factors driving companies and their employees towards flexible office spaces, and how do flexspace franchises fit in with this dynamic market?
- Adaptability in uncertain times
While many businesses are unable to predict their future office needs, conventional office leases traditionally involve long-term contracts that don’t take account of the fast-changing nature of a company’s situation. The pandemic has made many organisations realise the value of flexible workspaces that allow them to scale in accordance with the shrinkage and growth of their business needs.
- An increased uptake of flexspace in the suburbs
As COVID-19 continues to hinder workers’ ability to travel and congregate, companies are looking to decentralise by providing secure, flexible workspaces within safe and easy travel distance from home, says real-estate advisor Colliers. It notes that companies have shown a “shift in interest to non-central and suburban city areas to reaffirm or establish their local presence”, highlighting an increase in suburban flexible workspace acquired from 12% in 2018-19 to 16% in the last six months.
- Flexspace is ready for savvy investors
Flexspace enables investors to take advantage of the new working conditions required by much of the world’s workforce. And the impact of COVID-19 on commercial real estate presents a further opportunity to leverage the shifting status quo to their advantage. “Operators that came into this challenging period in a strong financial position with well-established businesses, limited vacancy and favourable underlying real estate deals are able to look at two main routes to expansion: either taking over space from another operator and/or acquiring the businesses of struggling competitors,” explains Ben Munn, managing director, flexible space at real estate services company JLL.
- The flexspace market has a track record of surviving times of uncertainty
Proven resilience is a prerequisite one looks for when selecting a partner in any business situation. And the flexspace market, particularly IWG, has an impressive record of weathering storms that might have upended less stable industries. “9/11, SARS, swine flu, volcanoes, earthquakes, cyclones, shootings. You name it, we’ve had it somewhere,” said IWG’s founder and CEO Mark Dixon earlier this year in Forbes.
- IWG offers security
Entering into a franchise partnership allows investors to access a deep font of resources, training materials and marketing collateral, combined with close and direct support. IWG franchise partners, for example, benefit from the company’s expertise in location selection, negotiating with brokers and formulating contracts as well as deciding on socially distanced office layouts.
Furthermore, operating under a well-established brand with a proven business model, IWG can provide research on how long other franchisees took to become profitable – thereby providing a degree of certitude that simply does not exist when starting a new independent business from scratch.
Like what you’ve read? Find out more about IWG’s franchising partnerships today
