Partnership opportunities explode as the hybrid work trend boosts suburban revitalisation
No longer obligated to commute to a city centre five days a week, professionals will spend their time and money in the towns and villages where they live - with increased demand for flexible workspaces in the heart of communities.
“Every now and again, something really dramatic happens that changes things forever. The Industrial Revolution. The railway. The motor car. The desktop computer. The internet. Today, we are witnessing another of these seminal moments with the hybrid working phenomenon – where people can work either at home or in a local, flexible workspace, with an occasional visit to the head office," says Mark Dixon, Founder and CEO of IWG.
The rapid acceleration of the hybrid work model has marked the last couple of years. Now, companies are quickly realising that their employees no longer want to return to a city-centre office five days a week, instead preferring the flexibility afforded by the hybrid working model. This allows people to base themselves from a combination of a city-centre HQ, their home, and a flex space close to where they live.
This fundamental change in working patterns is leading to the emerging trend for suburban revitalisation. Towns and villages are no longer emptying during the week, with people staying put to work - and spending money - locally. The rise of the hybrid model has also meant that people are freed from the constraints of full-time city living and are instead relocating to rural and suburban areas where they can enjoy a better quality of life.
The suburban shift is creating an unparalleled surge in demand for flexible office and coworking spaces in the heart of communities - creating a clear investment opportunity for property partners. Companies are showing their intent by investing in these local work hubs, which are more convenient for their employees and less costly than expansive HQs at premium city addresses.
South Africa has also seen significant momentum in its partnership business as investors move to capitalise on the long-term global trend for hybrid working, more than doubling the number of IWG partnership location commitments in the past few years since the pandemic.
The rise of model villages
With long commutes increasingly a thing of the past and hybrid working now standard for up to 40% of all workers, the research suggests there has also been a surge in the workforce of commuter towns and suburbs as hybrid working allows people to work closer to home, Local economies set for a boost as hybrid workers could rise by up to 175% in local towns. As a result of the roll-out of flexible office and coworking spaces for hybrid workers, it is also estimated that more than 4,000 new jobs could be created for people to run them.
This unprecedented wave of suburban revitalisation is paving the way for the development of model villages. These are places where all local amenities, such as shops, schools, restaurants and workspaces, can be reached within a short 15-minute journey from people’s homes.
"People want to work close to where they live, so this trend will stick," says Dixon. "With hundreds more rural and suburban flexible working locations expected to open in the coming years, we expect a wide range of vibrant local communities to develop with thriving businesses at their heart.”
About IWG PLC
IWG is the global leader in hybrid work solutions and workspace brands. We create personal, financial, and strategic value for businesses of every size. From some of the most exciting companies and well-known organisations on the planet, to individuals and the next generation of industry leaders. All of them harness the power of IWG’s hybrid working platform to increase their productivity, efficiency, agility, and market proximity.
IWG’s unrivalled network coverage includes approximately 4,000 locations across more than 120 countries and 83% of Fortune 500 companies are amongst our growing customer base.
Through our brands including Regus, Spaces, HQ and Signature, we help millions of people and their businesses to work more productively. We do so by providing the world’s leading hybrid work platform with professional, inspiring and collaborative workspaces and digital services all available via the IWG app.
For more information
Visit www.iwgplc.com and for more information on partnering with IWG, see: https://www.iwgplc.com/develop-a-location
