The news of three new takeover approaches for IWG is very welcome for the sector and is bringing flexible workspace further into the spotlight.
While certain audiences previously recognised the benefits, flexibility and global reach it affords to businesses, the recent private equity interest in IWG/Regus has helped take things to the next level.
Now, mainstream players within the commercial real estate market are starting to take notice and finally catching on to the trend. They are also beginning to embrace flexible workspace as more of a mainstream component of their portfolio.
This shift will inevitably result in a multitude of benefits for all those parties involved – from the office-space owners and providers through to operators such as WeWork and Servcorp – and also, most importantly, to their tenants.
Find out more - Flexible workspace competition heats up
It will not only serve as an upside for those parties because, as the demand for flexible workspace increases – from about 7% to 8% up to about 20% in the next five years – private equity firms will be looking to reap the benefits of the sector as well.
There is obviously significant amount of headroom enabling fast growth of businesses in the flexible workspace sector. It presents a great opportunity for them to enter the space, therefore, with little to no risk associated, and will ultimately contribute to a high growth rate for them and all those involved.
IWG/Regus is one of very few businesses with global reach in the flexible workspace sector, which creates obvious benefits for anyone who agrees with this.
This news will no doubt serve as a pivotal moment for other players/office space providers.
The topic is already hot as WeWork, for example, has done a terrific job of promoting flexibility to the millennial workforce and ultimately created numerous opportunities for them. They just need to work out how to make that target market profitable.