According to Regus, more businesses are looking to move into temporary office space rather than commit to longer-term leases.
The company has seen revenue grow by ten per cent to GBP 565.6 million. And the company’s pre-tax profit from January to June was GBP 13 million, contrasted with GBP 9.7 million in 2010.
During the first half of this year, Regus invested GBP 45.6 million in expansion, which took the form of 48 new centres and 5,674 new workstations, bringing its total number up to 193,393.
Regus offer serviced office space for rental periods of as little as half a day. Currently occupancy levels at its offices are at a record 86.7 per cent according to the company.
Chief Executive Mark Dixon said: “That [higher occupancy] is a result of more and more companies changing the way they work and starting to take up flexible workings, in particular large corporations.
“We expect to see the level of growth increase in the second half as we are still seeing very healthy levels of demand with more companies looking to cut costs and move to flexible working and we will need to open up centres to supply to that demand.”
Dixon added that technology is allowing more people to work from home, however, he also added that the economic future was unclear.
Regus, which has centres in 88 countries, counts GlaxoSmithKline, Starbucks and Google among its clients.
Recently the company renegotiated some leasing agreements with property owners in the UK, warning that the vehicles holding the leases could go into administration. This move angered some in the UK property industry, who noted that Regus is still financially strong.
Editor’s notes: In December 2016, the organisation created a holding company IWG (International Workplace Group) under which Regus would trade.
Other brands operated under IWG include Spaces and Signature by Regus and HQ office space provider.
In 2022, IWG recorded revenues of £3.1 billion – the highest in the organisation’s 34-year history.
The company advises that its successes have been due, in part, to, as well as whole floor managed office solutions, the provider has great experience in operating short-term office space solutions, part-time offices and coworking memberships which occupiers have developed a greater appetite for post-pandemic as they move towards hybrid working practices.