The pandemic has reshaped the office space sector as employers opt for shorter leases and more employees work remotely, forcing providers to adapt their businesses and properties.
The UK-listed owner of the Regus brand said open centre revenue in the quarter ending March 31 fell 16.1%, but that the quarter marked an “a clear inflection point” for its business with occupancy growth resuming in March after months of decline.
“We have seen an unprecedented demand for our flexible work products, which is a confirmation of the positive trend of continued demand for hybrid working,” IWG said.
The recent spike in coronavirus cases globally has compounded the worries for office property providers as governments in hardest-hit countries urge people to work from home and employers delay their return to offices.
Although IWG has identified hybrid work model and flexible spaces as the inevitable future, the company has yet to detail how its real estate needs to change or potential financial impact of such adjustments.
In general, with strict hygiene protocols in place, office spaces are remodelled to ensure social distancing with new seating plans and more spacing, glass-panelled cough guards, and bigger meeting rooms and reduced capacity for elevators.