Office Space News
Regus Celebrates 20th Anniversary in Serviced Office Industry
Published November 4th, 2009 by Jennifer LeClaire
Regus is officially celebrating its 20th anniversary this week, and its founder is predicting a rapid, major structural change in working practices over the next 10 years.
Regus opened its first business center in Brussels in 1989. The company now operates more than 1,000 serviced office facilities in 450 cities in 76 countries. In all, Regus boasts 500,000 clients around the world, including half of the Fortune 500 and thousands of small- to mid-sized companies.
As Regus Founder and CEO Mark Dixon sees it, the office industry is experiencing a watershed moment of change in workforce and workplace practices driven by three factors: the maturity of the Internet and mobile technologies, the constant drive to cut costs and boost growth, and the increasing workforce demand for flexible working.
Dixon is pointing to the way many private and public sector organizations around the world are adjusting to the global recession and how that adjustment is opening the door to a revolution in the way organizations structure their office space and workforces.
Part of the opportunity comes from companies that were caught with little liquidity and long-term property and personal commitments. Because staffing and property leases make up two of a company’s largest business expenses, Dixon says, companies are shifting their focus to how they can permanently reform their human and physical working infrastructure so that they do not get caught in the same trap again.
The global trend which Mr. Dixon has highlighted is also very much the case in the U.S., according to Guillermo Rotman, CEO for Regus Americas. Rotman says Regus’ rapid growth in the Americas reflects the changes in the U.S. economy over the last decade. Regus has grown to more than 500 centers that contribute nearly 40 percent of the revenue to the company.
“With more than 50 percent of office space sitting empty at one time, both the public and private sectors are looking to strip out cost, and long-term overhead commitments. At the same time, they do not want to lose key staff members,” Rotman says.
“The result is that these flexible working arrangements are providing a win-win combination for employers and employees alike. We are seeing a rise in the use of part-time employees, freelancers and remote workers. From a workplace perspective, this is enabled through solutions that can be rapidly scaled – up or down – to match each individual organization’s current and developing needs.”
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Bill Brookshire November 4th, 2009 at 9:31 am
Congratulations to Regus. It’s been a great 20 years. Regus wasn’t the first to launch out into the serviced office industry, but the company has certainly found a strong business model for success. It’s good to see Regus continue to grow after a bit of a blip at the turn of the century. Congratulations again!
Elizabeth Sanchez November 4th, 2009 at 9:39 am
I think Dixon’s comments are right on. And he has the credibility to speak into the serviced office sector because he’s been through the ups and downs of the industry. Dixon may sound a little like he’s marketing while he talks, but at the same time he speaks truth. He’s watched the evolution and so probably has a pretty good idea of where the workplace is heading.
Marcus Hester November 4th, 2009 at 2:35 pm
Happy Birthday to Regus. Twenty years in the serviced office industry is a long time. Even though executive suites officially emerged in the late 60s, the industry is still relatively new overall. Regus has made a name for itself with a lasting reputation of growth. I think it’s impressive and something the whole serviced office industry should be proud of.
Melanie Jones November 4th, 2009 at 2:45 pm
I thought it was interesting that Regus’ U.S. locations make up 40 percent of the company’s serviced office revenue. I would have thought that it would have been greater in Europe. That just goes to show you that serviced office space is really catching on the the United States. This is truly a global company.