Move comes as demand for furnished office space under short-term leases is gradually recovering from its pandemic low
Entrepreneurs have long sought to create a big online listing site for office space similar to how Booking.com or Airbnb offer lodging options. Now the Covid-19 pandemic is breathing new life into these efforts.
NOTE: This Wall Street Journal article by Konrad Putzier appeared in the March 16, 2022, print edition as ‘Airbnb for Offices Draws Interest.’
Flexible-office operator IWG PLC. said last week that it is investing around $350 million into a venture with the Instant Group, which runs an online listing site for office space. The companies say the business will be the world’s largest online marketplace for flexible office space.
The move comes as demand for furnished office space under short-term leases is gradually recovering from its pandemic low.
Hybrid-work schedules are increasing the demand for offices and meeting rooms that can be booked by the day or by the hour.
As more companies send their employees back to the office, many are embracing hybrid-work schedules. That is increasing demand for offices and meeting rooms that can be booked by the day or by the hour. IWG and Instant Group are betting that this, in turn, creates the need for an online marketplace to easily find and book these spaces.
IWG Chief Executive Mark Dixon said he is making a move now to get ahead of potential competition. “I bet Marriott wish they’d set up Booking.com before Booking.com did, right?” he said.
IWG, based in Switzerland, operates more than 3,000 office spaces across the globe under brands like Regus and Spaces. Under the deal, IWG merged its digital offerings with the Instant Group, which aside from the marketplace also offers services like office management and consulting. IWG owns 85% of the combined company and Instant Group’s management holds the remaining 15%, Mr. Dixon said.
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