WeWork's largest competitor IWG wants to expand to 30,000 locations - Business Insider

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IWG's CEO told us the flex-office company is taking cues from McDonald's and betting on explosive franchising growth to get to 30,000 locations

IWG has had its own financial challenges. After the dot-com crash, the company sold a 58% of its UK business to avoid bankruptcy, and filed for Chapter 11 bankruptcy in the US. The company was able to restructure and get out of bankruptcy in less than a year, and eventually purchased back its entire UK business.

"If we were doing it with our balance sheet and investing, it's just going to take too long," Dixon said.and according to media reportsThe number of locations can be a selling point for potential big clients with an international reach looking for space that can be flexible across locations around the world.

Commercial real estate experts JLL predict that 30% of office space will be flexible in 10 years. Dixon said that the idea is gaining in popularity worldwide, but adoption by US and Canadian large corporations is driving the biggest portion of growth. Dixon, like so many in the field, sees this trend only accelerating. Eventually, he sees a future where most companies will work remotely, with people connecting from flexible spaces in their own town.

He also highlights climate change as another force behind the turn away from commuting. By disaggregating the workplace to local workplaces, people will emit less carbon in their commutes.

 

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