Flexible Workspaces and Coworking Could Contribute Over $127 Billion to Local Economies in the U.S. in the Next Decade

DALLAS, Nov. 19, 2019 /PRNewswire/ -- The increasing migration of flexible office space and coworking locations to areas outside of major metropolitan cities globally is creating a 'flex economy' that could contribute more than $127 billion to U.S. local communities in the next decade, according to the first comprehensive socio-economic study of suburban workspaces from Regus. This global migration could contribute more than $254 billion to local economies around the world over that same time period.

The study revealed that:

• On average 161 new jobs can be created in U.S. locations that contain a flexible workspace, higher than the global average of 121 new jobs
• Opening a flexible workspace in the U.S. can account for up to $18.88 million going directly into the local economy per year.

Aside from the direct financial impact, coworking has been found to benefit workers and local regions in other, societal ways. In the U.S., this includes:

• Reducing the time spent commuting, with access to a local office space expected to save up to 21,783 hours per year (or 908 days), of which 10,892 hours (or 454 days) are assumed to be used for personal purposes, the most time of any of the 19 countries analyzed in the study;
• Stimulating businesses and services in the nearby local areas by generating over $28 million in Gross Value Added (GVA) each year in the U.S., the largest of any country analyzed in the study;
• Creating shorter commute times, which has been shown to reduce stress levels, increasing staff morale and resilience, as well as mental well-being.

"When people commute into major cities their wallets commute with them. Working locally keeps that spending power closer to home," said Mark Dixon, CEO for Regus' parent company IWG. "What this study shows is that providing more opportunities for people to work closer to home can have a tremendous effect, not just on them, but on their local area too. Businesses also recognize the benefits and we are seeing increasing demand from companies of all sizes for flexible space in smaller cities and towns."

This rise in local working is being largely driven by big companies adopting flexible working policies; moving away from relying on a single, central HQ and increasingly basing employees outside of the major metropolitan hubs in flex spaces. Most are doing so to improve employee well-being by allowing their people to work closer to home, and also to save money and boost productivity.

"This study reveals a shift in jobs and capital-growth moving outside of city centres, where it has been focused for the last few decades, into suburban locations," said Steve Lucas of Development Economics, and report author. "This can benefit businesses and people, from improving productivity and innovation, to reducing commuting time, which leads to improved health and well-being."

Study Methodology:

• The analysis, commissioned by Regus and conducted by independent economists, studied key countries to delve into the economic and social impact of flexible workspaces in secondary and tertiary cities and suburban areas both now and through to 2029.
• The study analyzed the socio-economic impact of flexible working in 19 countries: Australia, Austria, Belgium, Brazil, Canada, China, France, Germany, India, Italy, Japan, Netherlands, New Zealand, the Philippines, South Africa, Spain, Switzerland, the United Kingdom and the United States.

About Regus

Regus is the leading global workspace provider. We have built an unparalleled network of office, co-working and meeting spaces for companies to use in every city in the world. It's a global infrastructure built for businesses to support every opportunity.

Our network of workspaces enables businesses to operate anywhere, without the need for set-up costs or capital investment. It provides our customers with immediate cost benefits and the opportunity to fully outsource their office portfolio. Designed to enhance productivity and connect 2.5 million like-minded professionals, it's an instant global community and a place to belong.

For more information please visit: https://www.regus.com or call 1-855-400-3575.

SOURCE Regus