ALBAWABA – Though it seems remote work platforms such as Zoom and We Work are struggling, with Zoom cancelling its No Meeting Wednesday policy last week and ordering employees back to the office, the fact is flexible work is booming, according to Bloomberg.
Last week, Zoom cited declining productivity in the company’s back-to-the-office statement.
Zoom also ended its policy forbidding internal meetings on Wednesdays, saying it hindered collaboration, as other companies look to reduce unnecessary gatherings.
Meanwhile, co-working giant Regus — think WeWork, but with better cash flow and no leadership drama — just posted its best six-month sales period ever, Bloomberg reported. Thanks go to a growing list of customers, including Zoom, benefiting from Regus’ services.
Likewise, LiquidSpace Inc., a digital marketplace where clients like T-Mobile and the federal government find and book on-demand office space, has also seen transactions soar this year.
Moreover, the share of companies offering location flexibility, meanwhile, increased to 61 percent in July from 51 percent in January, according to Scoop Technologies Inc., which helps firms manage hybrid workforces.
So, despite news from WeWork and Zoom — and the push by companies like Walt Disney Co. to get workers back in offices most of the week — there’s a growing body of research, trend data and surveys showing that flexibility matters, the Bloomberg report confirmed.
“Work is now a thing we do, not a place we go. Offices play a role, but not the central one they’ve held for decades,” Matthew Boyle said in the article published on August 10.
“They are moving towards hybrid working. It's universal, and it’s gathering pace,” Mark Dixon, chief executive officer of Regus owner IWG Plc, said on a call with analysts last Tuesday.
“The narrative hasn’t yet caught up with reality — and the reality is large corporations globally are moving to a much more flexible approach to how they support their people,” he said.
IWG revenues rose 14 percent in the first six months of the year while operating profit more than doubled, thanks to 400 new co-working spaces coming on board, company data showed.
Earlier data in the United States (US) indicated a decline in demand for official property and real estate, with banks holding huge stakes in the sector.
Many office landlords are struggling to keep up with their debts and payments.
With the current stagnant occupancy rates and ballooning debt payments, they are looking to co-working as a potential lifeline, according to Bloomberg.
More than 10,000 building owners have reached out to IWG about starting a co-working arrangement, Dixon said Tuesday.
With 34 percent of leased US office space due to expire by 2025, according to brokerage JLL, Dixon expects that particular pipeline of potential customers to grow.
On the other hand, WeWork said Tuesday there’s “substantial doubt” about its ability to continue operating, citing sustained losses and canceled memberships to its office spaces.
But WeWork is not the singular player in the co-working space game.
There are about 5,000 vendors offering 15,000 locations, according to LiquidSpace founder and CEO Mark Gilbreath. He opened his first co-working space in Boise, Idaho, in 2008, two years before WeWork emerged.
Everything else indicates that flexible work is booming.
A typical hybrid worker is using a flexible office 32 percent more today than before the pandemic, Gilbreath said in an interview.
A survey of 14,000 full-time office workers from architectural firm Gensler found that Americans spent 28 percent of their workweek outside of their company’s office and their homes. They usually spend that time in a co-working space, on site or at a cafe.
Start-ups like Radious have emerged to make those gatherings easier. Co-founder Amina Moreau wants her firm to be the Airbnb of flex work, offering homeowners the chance to rent out their home offices to businesses.
Radious now has about 150 places available and will soon move into its third US market, Bloomberg reported.
