Leading flexible co-working space provider IWG plc sees strong growth of the industry as more companies tap hybrid work arrangement as part of their rightsizing strategy.
Lars Wittig, IWG plc country manager and senior vice-president Asean, told reporters in a recent interview the new coronavirus disease 2019 pandemic has pushed firms into adopting new ways to operate.
Wittig said some companies look at hybrid work as a permanent solution to provide flexibility and agility to their workers and operations. This prompts traditional office spaces providers to reinvent and allot some commercial spaces for flexible work.
“This kind of agility is what they are pursuing… flexibility has become permanent. The way to reinvent is to bring in the element of flexible workspace,” he said.
Wittig cited projections by property management consultancy firms which said that a minimum of 30 percent of all commercial office spaces will be transformed into flexible co-working spaces by 2030.
With flexible work spaces, occupiers enjoy having the short-term commitment while having that flexibility and agility.
Wittig said IWG targets to end 2023 with 29 locations as it ramps its expansion to seven sites this year.
He said the Philippine operations are recovering to pre-pandemic levels with occupancy rate averaging 85 percent.
Wittig said IWG has noted strong demand for flexible co-working space with almost 2,000 inquiries a month from occupiers.
Demand for co-working space mostly come from business process outsourcing , creative industries, finance and embassies, he added.
Wittig said the Philippines ranks among the top five countries in the IWG network.
He said IWG’s Regus brand has opened in Iloilo and is building its first flexible working space in Subic. Another center in Cagayan de Oro, IWG’s first in the area, is also being finalized.
According to Wittig, two more centers will be built in Metro Manila and one each in Quezon City and Las Pinas.
IWG currently operates in Clark, Cebu, Davao and Metro Manila.
Its busiest centers with the highest occupancy rate are Makati and BGC.
The company has been operating in the Philippines for 25 years.
IWG early this year opened its first-ever state-of-the-art flexible workspace in the Subic Bay Freeport Zone, as well as another in Quezon City. These openings are being delivered in partnership with Pacific Ace Subic Bay Corp. for the Subic site, under the Regus brand, and Triumph Spaces, Inc. for the Quezon City location, under the HQ brand.
Unprecedented demand from companies of all sizes and workers looking for hybrid working solutions means IWG will add 1,000 new locations over the next year. Hybrid working offers companies a significantly lower cost base with an average savings of $11,000 per employee.
The two sites are part of IWG’s drive to meet the rising demand for top-class flexible working space.
Both sites will include facilities such as private offices, meeting rooms, co-working and creative spaces for established firms and start-ups across a range of industries.
IWG’s Design Your Own Office service allows companies to tailor their space entirely to their requirements. In addition, IWG’s technology platform provides partners with access to all of its expertise, design support, and sales and marketing capabilities.
IWG’s unrivalled network coverage includes approximately, 3,500 locations across more than 120 countries and 83 percent of Fortune 500 companies are amongst our growing customer base.
Its brands include Regus, Spaces, HQ and Signature.
