Why corporates are utilising flexible office space

2017 saw a significant shift of strategy for newer operators in the flexible office space (flexspace) industry. Technology giant IBM signed a membership agreement with WeWork for all 600 desks at 88 University Place – the first reported case of a single corporation taking an entire WeWork space in New York. A WeWork spokesperson claimed that the company had five buildings worldwide that were occupied by one or two companies, and that companies with more than 500 employees accounted for 20 per cent of WeWork’s membership.

This was not by accident. IWG and other flexspace operators have, for a number of years, worked with large corporates requiring larger space and even whole buildings. This is in addition to the majority of their clients, who are SMEs, start-ups and freelancers. It’s this increased uptake by corporates that is driving the bottom line for flexspace operators, and they’re keen to capitalise.

Tech companies have been keen adopters of flexspace for a number of years and this shows no sign of letting up – in October Google leased 24,000 square feet of an IWG property in Toronto. In the UK last May, HSBC signed an agreement for more than 1,000 desks at a WeWork building in Waterloo.

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Kurt Mroncz

Kurt Mroncz

Offices iQ
Kurt Mroncz is co-founder and managing director of Offices iQ, a leading broker of flexible offices and coworking space for the corporate sector. Kurt has spent more than 14 years in the flexible workplace environment. He initially worked at Regus where he held the position of UK sales and marketing director, before spending eight years as VP of global corporate solutions. Seeing the growth potential of flexible office space, particularly in the corporate sector, he set up Offices iQ in December 2016. Offices iQ provides an end-to-end service for corporate and enterprise organisations using flexible space within their corporate real estate strategy, sourcing the widest choice of space globally and providing customer support from occupancy to exit. Offices iQ has a database of offices in more than 120 countries and finds space to match the unique needs of each client.