Hybrid-work company opens brick-and-mortar space in Portland
Courtesy / IWG
A Swiss company that specializes in developing hybrid working solutions opened its second Maine location at 400 Congress St. in Portland.
Long before the pandemic inspired work-from-home offices and remote schedules, a Swiss company began developing hybrid workspaces. And now it's opening its second location in Maine.
Founded in 1989, International Workplace Group now has about 4,000 locations under various brands across more than 120 countries.
The brands include Regus, Spaces, HQ and Signature. The Regus brand has leased 12,005 square feet at 400 Congress St. in Portland, and the branch is now open.
The location is known as Post Office Square, for the U.S. Postal Service branch that has long operated in the building. It was constructed in 1956 as the headquarters for First Portland National Bank, and is bordered by Congress, Temple, Exchange and Federal streets and adjacent to Portland City Hall.
The landlord, PO Square Building LLC, was represented by Drew Sigfridson of the Boulos Co. and of Exchange Street Partners and IWG’s partner for the center.
IWG entered the Maine market in 2023 under the HQ brand with the opening of a center at 700 Main St. in Bangor.
The plan is to open a third Maine location, and the second one in Portland, under the HQ brand at 41 Hutchins Drive in the second quarter of 2024. It will be 14,000 square feet.
8M customers
IWG is the world’s largest provider of hybrid working solutions and has 8 million customers worldwide; 83% of Fortune 500 companies are among its customer base, according to a news release.
In the U.S., there approximately 1,500 locations, with over 350 centers added in 2023, Mark Dixon, the company’s founder and CEO, told Mainebiz.
“IWG’s expansion in Maine comes on the heels of the business posting record quarterly revenue in Q3 2023 and achieving rapid network growth over the course of the year, adding nearly 900 locations globally in 2023,” he said.
The Portland location offers furnished private offices, meeting rooms and coworking spaces; and administrative services. Companies can tailor their own space.
‘Tremendous activity’
The Post Office Square space was formerly occupied by PTC, Sigfridson said. PTC (NASDAQ: PTC), is a Massachusetts-based Internet of Things technology company.
Sigfridson characterized the Portland space as having “a modern look and feel with glass walls, conference rooms with cutting-edge technology and a break room amenity space.”
“We have already seen a tremendous amount of activity and inquiries from individuals who are seeking a flexible space which doesn’t require a long-term build-out or long-term lease obligation,” he said.
“It is rare to find a turnkey space immediately available to move into with high-speed Wi-Fi and furniture, so this has become a great new option for office space in downtown Portland.”
Long-term model
“The rapid growth of hybrid working is creating unprecedented demand for high-quality flexible work solutions as companies of all sizes across all markets, including Portland, embrace the model for the long term,” said Dixon, who characterized the city as an important business hub for boosting IWG’s expansion plans.
“The clear and persistent rising trend of traditional office space vacancies is providing us with the possibility to acquire new locations at a fast pace, while enabling our partners to monetize their vacant space with the world’s leading hybrid working platform,” he continued.
The property was attractive due to its location in Portland’s central business district, surrounded by amenities, he said.
The centers are designed for companies of all sizes, including startups, small and medium-sized enterprises, and large multinationals across difference industries.
Additional investment to make the location operational included new lighting, “a high-quality fit out and tailored spaces for meetings and collaboration,” Dixon said.
Growth market
While the future of office market still a big unknown for Maine's real estate industry, demand for flexible workspace has increased significantly since the pandemic, said Dixon.
Dixon said hybrid work benefits retention and hiring, employee health, a company’s bottom line “and even the planet" due to a reduction in daily commutes.
“In fact, the hybrid workspace sector is one of the most exciting growth markets in the world, with research showing it is set to grow an estimated 600% by 2030, accounting for 30% of all office space,” he said. “Gallup data reveals 52% of employees are currently working in a hybrid model, and 54% expect to be hybrid working in the future.”
He continued, “You can see how much the sector is booming through our own network growth and financial performance. We recently reported our highest ever quarterly revenue in our more than 30-year history and our network is growing at its fastest ever rate, jumping 8% year-on-year to over $1 billion.”
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