Workspace business IWG plans to open four Spaces-branded office locations this year, with sites expected to be in Sydney, Brisbane and Melbourne.
Mark Bhardwaj, IWG’s head of partnership growth – Australia/New Zealand, told Inside Franchise Business Executive the new locations suit the new hybrid working habits of post-Covid, providing an alternative option to the large co-working office space, with footprints between 300 to 500sqm making them viable for retail, mixed use and high-density developments.
“We are calling this new offering Spaces OpenDesk. It’s mainly focused on memberships, virtual offices and co-working. Offices are still available to lease but the inventory is less compared to our main offering,” Bhardwaj said.
Traditionally the serviced office set-up [pictured above] has been based on up to 50 offices in one location; the new mini offer will have fewer than 10 office spaces available.
Bhardwaj expects the 40 per cent reduction in costs in comparison to a big box option to be a drawcard for investors, with franchisee fees also diminished.
The US-based business has created a concept location in Nappa Valley and the goal is to launch an Australian outlet in the next three months.
Introducing Spaces Napa Valley, CA, USA from Spaces. on Vimeo.
Typical franchisees will be investors looking for a long term future and the opportunity to develop between three and seven locations.
The first deal has been done from Cairns to Sunshine Coast, and investors in more regional areas are expected to see the brand’s potential for growth.
But it’s also a business ripe for inner city locations and Bhardwaj predicts Sydney’s Inner West and Eastern Suburbs to be prime spots.
“We saw the writing on the wall earlier than some, we have now seen a bounce back. In the first five months we have grown, the second half of the year we will be back to pre-Covid levels.
“We are now in growth phase. The future from where we sit is very different now. Enquiries are from big business with hybrid workers, most ASX companies are embracing the new model. The head office is now reduced, you still need it, but not for the same functions.”
Bhardwaj reports a big shift to the co-working membership model, with 500,000 global memberships signed up already this year.
