International Workspace Group, the world’s leading flexible workspace provider with brands such as Regus, Spaces and HQ, and professional facilities management company VelcoAsia Management Corp. signed a memorandum of agreement to establish a two-center franchise deal, which will provide venues for organizations to collaborate, innovate and grow together.
The two organizations teamed up to develop the Manila Coworking Powered by IWG, a franchise located in the historical Port Area, Manila.
IWG Philippines country manager Lars Wittig said that while the pandemic caused massive disruption to businesses and to the global economy, it also had its share in perking up digitally-relevant businesses and support to businesses.
“It’s a very good sign because the interest in investing and to become part of IWG and our network and network development has actually been more progressive during COVID even before COVID. We all knew the trends in real estate, commercial real estate. It was about a very rapid increase in demand for flexible workspace instead of the conventional leases. It was already growing, the trend was there,” he said.
IWG predicts that about 30 percent of all commercial office spaces would become flexible, one way or the other, by year 2030.
“I can safely claim and state that the future of work has arrived early to the Philippines, no doubt about it. The future of work is hybrid. The traditional workspace is changing, and employees have shown a clear preference for hybrid working, which allows for improved comfort and work-life balance benefits. Whether with the pandemic or not, flexible workspaces have long been growing immensely and a rising number of both local and multinational companies have been recognizing its importance to retain and attract talent,” said Wittig.
‘Powered by IWG’ is a new concept that enables management companies to run their business with the help of IWG’s world-class systems, brand, marketing and sales activities.
Operating under the IWG brand, management companies can tap into the global sales channel to draw traction and inquiries to their center, improving occupancy performance. ‘Powered by IWG’ allows them to drive operational and cost efficiencies that benefit both their business and tenants.
The development of two IWG franchise centers under VelcoAsia came alongside the growth in flexible working across the world.
The COVID-19 pandemic highlighted the need to transform the world of work, accelerating the hybrid work model, a trend that has been underway for several years. Businesses challenged the traditional approach to corporate real estate and are now committing to hybrid working for the long term.
“We have all been forced into a huge flexible workspace experiment regardless of country and industry. We have all been asked to try to work from home and it has been incredibly good learnings for the CFOs, the HRs, the CEOs. The employees actually already wanted that flexibility but now, everybody has embraced it. So, there are new terms that have become, I would say, the legacy of COVID-19 and that is hybrid working,” Wittig said.
He said that with the whole new type of demand, even the biggest corporations, enterprise accounts or customers approach IWG to help them set up their own networks for hybrid working with office hubs.
“And therefore, we also see a huge shift not only in the type of demand and inquiries but where the interest, the focus has shifted to, by these many corporations, these new customers,” he said.
In a recent study, IWG found that 81 percent of the companies worldwide anticipate that hybrid work will be the new norm and 82 percent of them have taken advantage of the flexible working options. Another study revealed that 42 percent of workers surveyed in Southeast Asia are remote-ready, while 9 out of 10 employees want flexibility in where and when they work.
Manila Coworking Powered by IWG is set to provide local and multinational companies, including freelancers, entrepreneurs, and MSMEs, an unparalleled network of office, co-working, and meeting spaces.
Customers will benefit from a global network of workspaces that will enable employees to work where, when and how they want. It provides cost-effective business solutions to foster an inclusive community and propel businesses through collaboration and innovation.
IWG noticed that Manila gravitates a very unique demand of customers and while it sees growth advancement on a rapid scale, it realized the importance to get ahead of the growth and do it together with the right partners.
“As we lead the global workspace revolution in driving innovation to enable businesses to adopt new work styles, local partnerships prove to be a key component to the success of our expansion plans. VelcoAsia, with its expertise in facilities management and a proven track record of enabling business growth, will be a reliable franchise partner as we ramp up our presence in the Philippines,” said IWG APAC franchise development director Matthew James Kenley.
VelcoAsia vice president Mario Veloso is confident that businesses still coping with the impact of the pandemic now have the opportunity to advance with the rise of flexible workspaces as they adapt to the new ways of working.
IWG is committed to increasing its footprint in the Philippines from 25 to 43 locations. It enables flexible working in 11 major cities including Metro Manila, Cebu, Davao, and Clark.