Flexible Spaces on the Rise: Increasing Occupancy in the Commercial Real Estate Market

With so many innovations in the real estate sector, we are always eager to better understand the latest trends and developments in the market to share with our readers and the SiiLA community. One trend that has been gaining prominence is Coworking.

In our latest video on our media channels, the REsource team sat down with Tiago Alves, CEO of Regus & Spaces in Brazil, to delve into the reasons behind the consolidation of this model, its prospects, and more. Additionally, we had the opportunity to explore the Spaces location at Irmã Gabriela building, situated in the Berrini region, south zone of São Paulo.

Regus & Spaces is part of the international group IWG, which has been present in Brazil for 29 years and boasts a portfolio of over 115,000 m² spread across the country. According to Alves, approximately 38,000 customers pass through the company's spaces daily.

In the executive's view, this number demonstrates the market's strong consolidation. He attributes the increasing occupancy of this model in the real estate market to several factors. "This growth is the result of various factors, with the main one being the widespread adoption of hybrid work. Many companies are questioning the real need to be in the office every day of the week. The rotational use of workspace is much more efficient when you have access to the flexible spaces that coworkings offer. This has driven a significant increase in their market occupancy", he stated.

The CEO of Regus & Spaces also discussed the process of selecting a location to install a coworking space. The age-old adage in the real estate market ("location, location, location") applies to all types of assets, but for flexible spaces to thrive, a location with demand for this type of work is essential.

"Nowadays, clients have been requesting these spaces in the north and east zones of São Paulo, as well as in satellite cities, so that people do not have to commute to the capital every day. Additionally, we are also seeing increased demand for spaces in the central business district. Thus, our group is actively seeking prime locations and excellent assets, but we are also thinking outside the box, exploring work areas that may be residential or suburban, where people want to work close to home but not necessarily at home", he explained.

In the coming months, the IWG group plans to expand its presence in the main cities of Brazil, including state capitals and secondary municipalities. The company has been investing in new team members to drive national growth, particularly in the North, Northeast, and South of the country, which are now among the company's top priorities.