Same Space, Different Business
Serving different customer journeys through one operating model
Two flexible-workspace operators can report identical occupancy and desk rates while generating different returns. The difference lies in who occupies the space, what it costs to serve them, how long they stay and what happens when they leave.
Consider three customers using flexible workspace in Riyadh: a regional headquarters team establishing its Saudi presence, a founder seeking peers and business support, and a government programme team mobilising near its fieldwork. Each requires a different approach to onboarding, service and renewal.
It is possible for one operator to serve all three. However, the key task is to understand the differences between each one and configure an operating model around them.
Customer journeys determine what the operator needs to deliver.
EXHIBIT 1 | The same office can serve different customer requirements.
CUSTOMER JOURNEYS → SERVICE REQUIREMENTS → COMMERCIAL DECISIONS
Segment differences should change delivery, staffing and contract terms.
Add capabilities only where they address a customer requirement. A different marketing label does not equal a differentiated services offering.
EXHIBIT 2 | One operating foundation can support different customer journeys.
For startup customers, access to accounting, bookkeeping, payroll and recruitment support can be a meaningful extension of the workspace proposition. Established corporate teams typically have these capabilities internally or through existing providers.
Operators need not deliver these services in-house. They can be offered through qualified partners, with clear pricing, delivery responsibilities and service standards.
Operating models also determine how commercial and property risks are allocated.
IWG reported USD 2.4 billion in system-wide revenue for the first half of 2026, up 11% year on year. Recurring management-fee revenue rose 84% to USD 35 million. Its international network supports customers working across locations, while management agreements generate fees from property-owner relationships. Those relationships require different service commitments and commercial arrangements.
In January 2025, CBRE announced an agreement to acquire the remaining equity in Industrious at an implied enterprise valuation of approximately USD 800 million. CBRE highlighted workplace operations and a partnership-led model aligned with property owners. Service design and the allocation of property risk both belong in the investment assessment.
Riyadh's 2026 figures make the customer mix commercially significant.
JLL findings reported by Arab News on 9 October 2026 put flexible-office occupancy near 90% in Olaya and in the mid-80% range in King Abdullah Financial District. International companies account for 50-60% of Riyadh's flexible-office occupiers; new company setups generate 55-60% of enquiries.
The Ministry of Investment separately reported that more than 750 companies had joined the RHQ programme by August 2026. This establishes the scale of corporate establishment activity, although it does not measure take-up of flexible offices.
JLL also reports investment in meeting capacity, technology and hospitality services.
The customer mix at each location should determine which additional services are offered, how they are delivered and whether the demand justifies the cost.
Segment-level economics explain what occupancy leaves out.
A project-heavy centre can be attractive if mobilisation costs are controlled, contract pricing covers service delivery and the replacement pipeline is credible. Longer customer tenure is not automatically better: discounts, support requirements and concentration in a few accounts can change the return.
For operators, the test is whether each customer segment generates sufficient contribution after service and acquisition costs, accounting for renewal, expansion and exit patterns. For investors, the question is whether those earnings are sustainable, considering customer concentration, contract expiries and replacement demand. For developers, it is how fit-out costs and property-related risks are allocated between the owner and operator.
Planning the exit is part of serving the customer.
An RHQ customer moving into permanent premises is not necessarily a failure of retention. It may be the natural completion of the customer's requirement. For the operator, however, the revenue departure still needs to be managed. Transition dates should be agreed early, opportunities to retain the relationship through other services assessed, and replacement demand developed before the space becomes vacant.
Planned transitions should be distinguished from service-related departures, even when both reduce occupancy. The operating plan should connect each customer journey to clear accountability, service economics and an expected renewal or exit date.
For flexible-workspace operators, investors and developers assessing how customer mix shapes operating-model decisions and commercial performance, we would welcome a conversation.