Amid growing demand for flexible office solutions that cater to evolving employee expectations and enhance operational agility, International Workplace Group, a Switzerland-based provider of hybrid working solutions, plans to expand into more lower-tier cities in China with innovative service formats over the next five years, said its senior executives.

During his recent visit to China, Marc Descrozaille, CEO of IWG for Asia-Pacific, the Middle East and Africa, said it is important for the group to adapt its expansion strategy to align with the swiftly evolving hybrid work models as they gain popularity in China.

IWG currently operates 140 workspaces across 35 cities in China and has signed agreements for more than 50 new locations in the country, as well as 899 globally in 2024, underscoring its commitment to addressing the rising demand for flexible workspaces.

"Our growth in the Asia-Pacific region has been strong. We are focused on establishing new centers in suburban commuter towns," said Descrozaille, adding the group aims to accelerate its expansion in China, especially in second- and third-tier cities, over the next five years to improve accessibility for remote workers and small businesses."

Driven by rising demand and shifting workplace preferences, China's flexible office space market is projected to register a compound annual growth rate of greater than 5 percent during the forecast period (2025-2030), according to market consultancy Mordor Intelligence.

IWG's global expertise also makes it well-positioned to support Chinese companies as they expand internationally, helping them navigate regulatory requirements and implement tailored technology solutions to meet the needs of diverse markets, he added.

After observing an increasing preference in businesses opting for flexibility, often replacing long-term leases with shorter agreements or partnering with flexible workspace providers, Edward Hu, managing director of IWG China, noted that in 2025 and beyond, more members of Generation Z are entering the workforce.

Gen Z refers to people born between the mid-1990s and the early 2010s.

As digital natives, they are expected to make up about one-third of the labor market. Their values are changing the workplace, with a stronger focus on diversity, openness and authenticity, said Hu.

Having entered the Chinese market three decades ago, the Switzerland-headquartered IWG now operates over 4,000 workspaces across more than 120 countries and regions, supported by a global team of over 10,000 employees.

The group has built a diverse portfolio of more than 20 brands, including Regus, Signature, Spaces and HQ, catering to a wide range of business needs and market segments.