Why Investing in Flexible Working is Essential for Modern Success
The way people work is changing. Investing in flexible working is essential for modern success. Technology and innovation through mobile devices, cloud computing, and social networking allows people the freedom to work from anywhere at any time. Now companies large and small have discovered flexible working as a great solution, providing the flexibility they need, within a fully furnished space. Investing in flexible workspace solutions is also the best way to attract and retain top talent in a new generation workforce that wants flexibility, rich amenities, connections, community, and collaboration.
The flexible working segment is an asset class that has shown tremendous potential over the last few years with growing interest from both large occupiers as well as small and mid-size firms. In South Africa, “space as a service” is a rapidly developing business sector that’s gaining traction in the country’s prime business hubs and now in the suburbs, thanks to the cost-advantages and flexibility offered by these varied working spaces.
What the data tells us about investing in flexible working. Below see an infographic based on a survey compiled by IWG Plc.
While the flexible office as a franchise segment in South Africa is still at a budding stage, the Covid-19 has awakened Institutional investors to the potential of flexible workspace franchise as a synergistic extension of their existing portfolio or even a safe bet to their next venture
“At the global and domestic level, shared office space has already generated a lot of interest among occupiers. The pandemic could, however, force the flex office space providers to evolve and Investors are watching the trends that are emerging in the office space as a result of Work-From-Home or Work-From-Anywhere or companies adopting a capex-light model in the wake of the pandemic”, says Alan Van der Westhuizen, Head of Partnership Growth South Africa at IWG Plc. (Regus and SPACES in South Africa)
Corporate occupiers are in the midst of re-strategising their real estate portfolio to optimise operational expenditure. IWG Plc. foresees the flexible workspace as a Franchise opportunity which will become a sustainable and investor-friendly proposition post-pandemic.
For franchise professionals looking to strengthen their business portfolio, flexible workspaces, unlike gyms, hotels, and many food franchises, were able to stay open to customers during the pandemic, and there is huge unmet demand for new centres in suburbs and secondary cities around the country, with few nationwide brands in competition.
The shift to hybrid working is driving a solid growth in sales from office workers who want to continue working closer to home in smaller towns and cities, so now is a great time to explore flexible office space within a diversified franchise portfolio.
The IWG franchise model presents an opportunity to diversify away from traditional franchise industries, and benefit from strong cash returns and significant returns on investment. Landlords, multi-franchise operators, REIT’s and high net-worth individuals can enter this exciting industry in partnership with Regus, the world’s largest provider of flexible workspace and part of IWG.
“We have a balanced portfolio of SMEs and start-up clients as well as recently concluded deals with large enterprise clients. The enterprise-driven model has allowed us to add over half a million new members to our network, which in turn has created interest from larger investors in the flexible workspace sector”, adds Van der Westhuizen.
Investing in a flexible working franchise is a great way to start your very own business in a booming industry that offers tremendous potential. IWG Plc. has been an industry leader, and plans to continue that trend well into the future.
If you’re looking for an investment in an industry with high demand, look no further than the flexible workspace industry. The flexible segment is poised for continued expansion, and there is ample opportunity for franchisees to stake their claim and succeed.
Are you interested in joining one of the fastest-growing flexible workspace franchises? Fill in the form & a dedicated member of the IWG team will get in contact with you directly.