Hartford Business Journal

HARTFORDBUSINESS.COM | NOVEMBER 13, 2023 5 Deal Watch IWG currently operates a "Spaces" coworking location in West Hartford's Blue Back Square (shown above). IWG will be opening at least 10 new Connecticut coworking sites in 2024. PHOTO | COSTAR Coworking giant IWG eyes major CT expansion By Hanna Snyder Gambini hgambini@hartfordbusiness.com C oworking space was dealt a blow during the pandemic as office workers retreated to their homes amid heightened public health concerns. But, as more people return to work, at least for a few days a week, one of the world's largest coworking providers is eyeing aggressive expansion in Connecticut. Switzerland-based International Workplace Group, or IWG, is the parent company of various coworking brands, including Regus, HQ and Spaces. It currently has 16 work- space sharing locations throughout Connecticut, including in downtown Hartford, New Haven, Windsor, Rocky Hill, Berlin and West Hartford. By the end of next year, IWG plans to nearly double its Connecticut footprint to about 30 total locations, said Ken Godek, the company's Northeast area vice president. It already has signed agreements to open 10 new Connecticut sites during the first half of 2024, in Middle- town, Farmington, New Britain, New London, Hamden, Wallingford, North Haven, Willimantic and Stamford. Driving the expansion, Godek said, is IWG's refreshed business model and society's continued embrace of hybrid work. "Not everyone can work from home," Godek said. Many profes- sionals face work-from-home chal- lenges such as internet bandwidth issues, children at home, pets barking in the background, or are just in need of some social interaction. IWG's coworking sites revolve around individuals or companies renting workspace as needed in fully equipped and furnished settings, complete with Wi-Fi, office technology, and even sometimes coffee bars, with restaurants and shopping nearby. IWG's expansion, Godek said, is also meeting growing demand for suburban workspaces for those who may not want to commute into cities. Meanwhile, some workers like the choice of working from various loca- tions, and many professionals might choose to work in different offices that are closer to certain clients or colleagues, he said. "Most of what we're adding on right now is actually in that suburban market … and nationally, we're looking at going into a lot of rural areas," Godek said. International growth IWG got its start more than 30 years ago, after founder Mark Dixon noticed business people in Europe holding meetings in local coffee shops. It piqued his interest in launching a company that offered flexible short- and long-term workspaces. The company, originally founded as Regus, expanded significantly and faced its share of challenges over the years. It eventually changed its name to IWG, which serves as the parent company to a number of coworking brands. Three of them — Regus, Spaces and HQ — currently operate in the state. The majority of the company's new Connecticut sites will be Regus locations. Spaces will open a location in Wallingford, while HQ will open in Willimantic, Godek said. IWG's Nutmeg State expansion is part of a broader international growth effort. Globally, IWG opened 400 new locations during the first half of 2023. "... We are seeing fast-growing numbers of businesses across the world adopt and reap the benefits of a model that involves employees working from home for a day or two each week, alongside collabora- IWG'S BRANDS IN CT Regus • Largest brand with locations in most cities around the world • Wide variety of sizes • Specializes in small, private offices and coworking areas Spaces • In 200-plus city centers • Coworking facilities from 20,000 to 100,000 square feet • Option to create customized client areas HQ • Offices, meeting rooms, lounges and coworking • Home to businesses of one to 100 people Source: IWG

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