IWG expands into 21 more Illinois coworking spaces

Shared workspace provider IWG is doubling down on plans for expansion in the Chicago area and throughout Illinois, despite ongoing challenges for the coworking model and a rough office market harmed by hybrid work schedules.

The Switzerland-based coworking company is adding 21 locations in Illinois, nearly all in Chicago and its suburbs, the company announced on Tuesday.

The move runs counter to recent headlines about the coworking sector — its juggernaut WeWork filed for bankruptcy this month — and IWG sees hybrid work not as a problem for the office market. It’s adding hubs in suburbs where people previously commuted into the city.

“Our expansion in Illinois comes at a time when more companies are discovering that hybrid working boosts employee happiness and satisfaction, while helping the environment,” IWG’s CEO and founder Mark Dixon said in a statement. “Our workplace model is also proven to increase productivity and allows for a business to scale up or down at significantly reduced costs.”

Chicago locations include one in Ravenswood near Uptown, one in Fulton Market and one in River North. Suburban locations (see list below for addresses) include Arlington Heights, Downers Grove, Naperville, Elgin, Lisle, Park Ridge, Lombard, Oakbrook Terrace, Vernon Hills, Westmont, Libertyville and Frankfort. Most locations will operate under the company’s Regus brand. Two of the Chicago locations have already opened, and the rest are set to open sometime in 2024.

The company currently has 64 spots in Illinois, and over the last year added 600 locations — which includes 300 in the U.S.

The company’s strategy appears to be a departure from much of the traditional office industry, which has struggled with waning leases in city centers and coworking spaces in the heart of downtowns. WeWork’s locations have long been concentrated in major cities.

The plan appears to be paying off for IWG, which said the expansion was driven “by unprecedented demand for hybrid working solutions from both workers and companies.” 

The company said that with 40 percent of U.S. workers already on a hybrid model, more companies will need flexibility with leases and the type of offices they rent.

“Hybrid work is radically reshaping our cities, our suburbs and beyond,” Dixon said. “With a profound and lasting impact on the make-up of communities and the geography of towns, cities and the nation, the hybrid work model is one of the most important forces at play in the world today as workers increasingly embrace the opportunity to work from a local workspace.”

The announcement comes only weeks after WeWork, once the startup darling of the coworking industry, declared bankruptcy. Only one day later, Dixon confirmed to Reuters that IWG was exploring acquiring more of WeWork’s spaces.

IWG’s Planned New Illinois Coworking Locations for 2024: 

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