IWG — the parent company of Regus, one of the biggest players in the global coworking industry — has noticed an increasing demand for flex workspace solutions. Often, this is coming from workers who are no longer keen on spending their work hours in a traditional office setting or in their homes.
As such, Regus’ upcoming openings in El Dorado Hills and Rancho Cordova — both part of the Sacramento area in California — are expected to reflect the needs and expectations of both workers and companies that are on the lookout for non-traditional office spaces in tertiary and suburban locations close to their homes.
CEO of the Americas for IWG Wayne Berger said the following: “What we try to do is make it like an ecosystem for workers. And we’re seeing more and more companies trend away from a traditional real estate lease.”
The new Regus space at 10940 White Rock Road in Rancho Cordova will spread across almost 23,000 square feet, while the El Dorado Hills site at 1264 Hawks Flight Court is set to have more than 14,000 square feet. With these two new locations, IWG will claim 15 sites in the greater Sacramento region. Rancho Cordova is scheduled to open in December, while El Dorado Hills is anticipated to open in September of this year.
The upcoming Regus locations will have workplaces that can accommodate up to 30 employees. Arrangements will include conventional office space, “phone booths” for private discussions, meeting areas as well as breakout rooms. Additionally, both coworking spaces have on-site staff to manage tenants’ administrative needs, as well as the communal dining areas and kitchens.
According to Berger, because smaller places are in demand, IWG’s space demand has increased 30% since before the epidemic. He emphasized that, while many workers are open to going back to the office, they struggle with the commute, which is why Regus is focusing on areas closer to where many office workers reside. Berger also said that businesses were taking similar actions because renting space from Regus allowed them to sign a shorter-term lease and save money on amenities and tenant improvements.
Of course, the shift in how people work has repercussions that are still being felt. So, in order to provide dedicated coworking spaces in buildings that would not otherwise be rented, Berger said Regus was focusing on forging agreements with developers and landlords. He said this also applied to vacant retail space in office buildings.
According to him, these agreements make up around 90% of the contracts IWG secured in 2022 and 2023.