Issue link: https://nebusinessmedia.uberflip.com/i/1511162
6 HARTFORDBUSINESS.COM | NOVEMBER 13, 2023 DEAL WATCH tive time spent at a nearby flexible workspace and the occasional visit to corporate HQ," Dixon said in IWG's midyear earnings report. "If it was the pandemic that initially lit the fuse, technology is the fuel that's now propelling the uptake of hybrid working to levels that very few predicted just two or three years ago." IWG now counts more than 4,000 shared workspace locations world- wide used by 8 million-plus people in 120 countries. In the U.S., it has 1,100 locations, including about 70 within its North- east division, Godek said. During the first six months of 2023, IWG, which is publicly traded on the London Stock Exchange, reported record revenues of over $2 billion and a significant spike in profits. 'Capital light' IWG's expansion is being driven by a new "capital-light" strategy. The company has shifted its focus away from owning leases or prop- erty. Instead, IWG signs partnership agreements with landlords and helps them run their empty space. IWG then shares a percentage of the building's profits with the landlord. Robert H. Motley, senior director at real estate services firm Cushman Wakefield, connected IWG with its new site in Hamden. He said this new model benefits both the landlord, who can fill "stranded" or long-empty office buildings, and IWG, which has an abundance of inventory from which to choose. The new partnership models are based on the landlord outfitting the space for IWG's various brands. That translates into significant capital savings for IWG, Motley said. "IWG is basically coming into existing office space that already has a lot of what they need, and not going into raw, brand-new space that needs major overhauling, which is very costly," Motley said. "And this new partnership only works when you have office space that's been empty for protracted periods of time." IWG has plenty of empty office space to choose from in Connecticut and Greater Hartford, which posted a 29.8% office availability rate at the end of the third quarter of 2023, with 7.3 million square feet of vacant space, according to brokerage firm CBRE. Evaluating needs Godek said IWG locations cater to a spectrum of clients, from one-time or drop-in guests to long- term contracts for companies or single professionals. "We've seen a huge uptick in people who are one-offs," and just need to get out of their home, Godek said. Some clients get stipends from their companies, or pay out of pocket IWG'S PLANNED NEW CT LOCATIONS IN 2024 Municipality Address Location type Farmington 1053 Farmington Ave. Regus Hamden 2321 Whitney Ave. Regus Middletown 366-386 Main St. Regus New Britain 1 Liberty Square Regus New London 125 Eugene O'Neill Dr. Regus New London 2 Shaws Cove Regus North Haven 57 Dodge Ave. Regus Stamford 9 West Broad St. Regus Wallingford 3 Sterling Drive Spaces Willimantic 322 Main St. HQ Source: IWG for the shared office spaces, and the centers offer anything from desk space to conference rooms. The company also serves as swing space, if a company needs a temporary site or is downsizing, or for start-up businesses that don't yet have dedicated office space. Paying month-to-month for office space is becoming more attractive to companies as they continue to adapt to a new workforce and eval- uate their space and service needs, Godek said. The Northeast is a prime market for growth, he added, mainly due to its proximity to major cities, and clients enjoying the flexibility of working at different, yet nearby locations. "We are rapidly growing and expanding our portfolio and footprint in Connecticut, especially the Hart- ford area. We have a large uptick in suburban demand and are able to accommodate all work styles," Godek said. CRDA buys downtown Hartford Front Street property; Peruvian restaurant planned 89 Arch St., Hartford. PHOTO | COSTAR By Michael Puffer mpuffer@hartfordbusiness.com The Capital Region Develop- ment Authority has purchased a 2,500-square-foot building in Hart- ford's Front Street Entertainment District that is slated to be taken over by a new Peruvian restaurant called Triple Three. CRDA Executive Director Michael Freimuth said his agency has purchased the former Blind Pig Pizza Co. space, at 89 Arch St., for $650,000. Before the sale, the building had been leased to a group working to renovate it into a Peruvian restaurant, Freimuth said. CRDA will honor the lease, which aligns with the agency's goals for the area, he said. The building was the site of some controversy last year, when the CRDA scuttled plans by a different group of investors — led by Derrick Gibbs, founder of Middletown-based home-care and behavioral-health provider Change Inc. — to convert the building into a cannabis dispensary. The dispensary proposal received backing from city plan- ning staff, but was opposed by the CRDA, which argued the use would not align with Front Street's "family-friendly" atmosphere. Gibbs' cannabis company, Budr Cannabis, has since opened dispen- saries in West Hartford and Danbury. Chill vibe Jefferson Valdiviezo, owner of New Britain-based trucking company Smooth Logistics, has partnered with Christian Narro, owner of The Forbidden Llama Peruvian restau- rant in Middletown, to open the Triple Three restaurant at 89 Arch St. Valdiviezo said a lease with the building's previous owner began in February. He expects to spend about $90,000 fitting out the space with a relaxed-atmosphere bar. The menu will feature an array of Peruvian foods and some Mexican favorites, including tacos. Valdiviezo said he wants to create a unique and fun space, as well as drink and food presentations that lend themselves to social media posts. "Something chill, something with great food," Valdiviezo said. "I want a restaurant with a nice vibe." Valdiviezo lives in downtown Hartford and said he sees crowds of potential customers transiting from the nearby Travelers Tower, UConn's downtown campus and the Connecticut Convention Center. Valdiviezo said Triple Three will add a unique flare to the mix of food and entertainment venues around Front Street. He is aiming to open either late this year or early in 2024, as soon as he can complete local permitting. Valdiviezo said he is financing the restaurant purely with his own funds and no loans.