IWG flags ris­ing de­mand for subur­ban of­fices with firms cau­tious over cities

The Daily Telegraph - Business - - Business -

◆ De­mand for of­fice space is boom­ing in the sub­urbs as coro­n­avirus sparks a ma­jor shift in work­ing life, prop­erty firm IWG has said, writes Rachel Mil­lard.

With em­ploy­ers hes­i­tant to herd com­muters back into city cen­tre of­fices, more busi­nesses are set­ting up satel­lite sites on the out­skirts of cities such as Manch­ester, Lon­don and Birm­ing­ham. Mark Dixon, chief ex­ec­u­tive of the of­fice provider, said de­mand had in­creased by as much as 30pc. He said: “Many com­pa­nies are mov­ing whole­sale to de­cen­tralised work­ing. Where we have some dif­fi­culty is in ma­jor metropoli­tan cen­tres. There are enough avail­able build­ings; if not we will build.”

The com­pany, which owns brands such as Re­gus and Base­point Busi­ness Cen­tres, re­ported a 3.5pc in­crease in rev­enue to £1.3bn dur­ing the six months to the end of June.

A strong per­for­mance in the first quar­ter helped bal­ance out a dif­fi­cult April to June when the ef­fects of lock­down hit.

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