IWG sees record demand for office space despite tariff threat

IWG’s sales in its managed and franchised division jumped by 23% to $171m

By HARRY WISE

Updated: 12:01 BST, 6 May 2025

Office space provider International Workplace Group enjoyed record demand in March, despite rising global uncertainty resulting from US tariffs.

IWG revealed its turnover was broadly flat at $909million (£683million) in the three months ending March, while system-wide revenue rose by 2 per cent to over $1.05billion.

Sales in its managed and franchised division jumped by 23 per cent to $171million, supported by room openings surging by 41 per cent year-on-year to 202,000.

IWG, which owns the Regus brand, expects the run-rate of managed and franchised room and centre openings to rise in the second quarter.

The FTSE 250 company anticipates delivering $1.5billion of system-wide revenues annually ‘once these rooms are all open and mature’.

Although the group said it was cautious due to the current macroeconomic backdrop, it noted that recent tariffs had not yet affected signings or openings.

Performance: Office space provider IWG enjoyed record sales in March despite rising global uncertainty resulting from Trump’s tariffs

President Donald Trump has introduced a 10 per cent baseline tariff on imported US goods, as well as a 25 per cent tax on steel and aluminium products and a massive 145 per cent tariff on Chinese-made goods.

These measures have incited turmoil in global markets and heightened the chances of a global recession happening this year.

But IWG continues to expect its earnings before nasties will total between $580million and $620million this year.

Mark Dixon, founder and chief executive of IWG, said: ‘I am delighted with our start to 2025 despite uncertainty globally.

‘March was a record sales month, and lead indicators such as enquiries and tours are running at all-time highs in the US despite the challenging macroeconomic backdrop.

‘We continue to see signings and openings grow as we further expand our network and coverage, allowing the flywheel of our business model to keep delivering greater cashflow whilst requiring less capital to grow than historically.’

IWG also declared on Tuesday that it was doubling its existing share buyback scheme to $100million, with the previously-announced $50million set to be finished by early August.

Analysts at Barclays said: ‘While the uncertain economic environment is not helpful, we believe the group is well placed and should continue to see growth, absent a major global economic shock.’

IWG shares were 0.8 per cent higher at 189.8p on Tuesday morning, meaning they have increased by around 16 per cent since the year started.

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IWG sees record demand for office space despite tariff threat

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IWG sees record demand for office space despite tariff threat