Coworking giant IWG is opening four new spaces in Illinois as part of a major U.S. expansion, which the company said is in response to adding 2 million customers in the past year.
IWG is set to open three locations in and around Chicago and one near St. Louis, the company said in a statement Tuesday. All the spaces are in smaller office buildings in Illinois, including two on Chicago’s North Side.
The world’s largest provider of flexible office space said the move is part of a broader plan to open more than 500 new spaces around the country in the next few years, with demand for flexible office space surging. U.S. expansion will be across small towns, suburban, exurban and urban locations, IWG Americas CEO Wayne Berger said in an email to CoStar News.
It’s the latest sign of coworking companies including IWG — which operates under brands such as Regus, Spaces, HQ and Signature — benefiting even as owners of traditional office space struggle nearly three years into COVID-19.
“We are delighted to be working with new partners to bring the numerous benefits of hybrid working to businesses, local communities and employees in the area,” IWG founder and CEO Mark Dixon said in the statement. “Over the past two and a half years, demand for hybrid working solutions has rapidly increased as workers enjoy a significantly improved work/life balance with less time spent commuting and employers benefiting from substantial cost savings and the ability to recruit from a wider pool of talent.”
U.K.-based IWG last year unveiled a wave of expansion in Texas, telling CoStar News that it was on target to open 1,000 new locations globally over a one-year period.
IWG said most of its expansion is in partnerships with developers and property owners or franchisees.
IWG said it currently has about 3,500 locations across more than 120 countries, including 1,100 U.S. spaces. Its customers include 83% of the companies in the Fortune 500, it said.
Coworking providers have thrived in areas that have seen an influx of office workers during the pandemic. Miami has been a bright spot for WeWork, even as it shuts down underperforming spaces, CoStar News reported in December.
IWG said it is adding two facilities on Chicago’s North Side: a 10,560-square-foot Spaces office that recently opened within a six-story loft office building at 1200 N. Ashland Ave. and a 4,212-square-foot HQ set to open in the third quarter within a four-story building at 1918 N. Mendell St.
It also plans two Regus locations in single-story buildings, including 11,000 square feet at 1452 N. Merchant Drive within the Birchwood Office Park in Algonquin, northwest of Chicago, which will open this quarter, and 12,280 square feet at 12 Wolf Creek Drive in the Wolf Creek office complex east of St. Louis, which expected to open in the second or third quarter.
All four offices will include private offices, coworking and collaboration areas, meeting rooms and technology services.