The Office Group has become the latest flexible working company to have enjoyed a bounceback in demand over the second quarter of 2021, with a record number of new desks sold over the period.
TOG sold around 2,300 desks over the second quarter, equating to growth of 196% versus the first three months of the year when the UK was in lockdown, led in part by an expansion at its Old Street Roundabout site by Ocado.
The logistics giant increased its office space at White Collar Factory, EC1, to 14,000 sq ft, as it sought to accommodate further growth in its business. It had previously held 8,149 sq ft at the site.
James Lunn, an associate at Gerald Eve which advised Ocado on the deal, said: “White Collar Factory has proven to be an ideal location for Ocado since we first arrived at the end of 2020. It’s great to expand and deepen the relationship with TOG through this increased commitment.”
TOG also saw 40% growth in enquiries in the second quarter against the first, and 100% growth in viewings over the same period, as well welcoming new customers including digital workflow company Monday.com.
It comes after both WeWork and IWG announced a speedy return to growth in the second quarter, with WeWork hailing the spring months as its strongest since its aborted initial public offering in 2019.
The news will come as further encouragement for those predicting a period of dramatic growth across the serviced office sector, as tenants increasingly look for flexibility on lease terms and office floorspace as they work out how they will return to the workplace.
Olly Olsen, TOG co-founder and co-chief executive, said: “Our strong performance in Q2, and record new business transactions in June, confirms that confidence is returning to the market. This is coupled with the enduring appeal of physical, well-designed workspaces where colleagues really want to be so they can collaborate, create and socialise.
“As companies review their real estate requirements, we’ve seen really strong interest in our spaces. Companies of all shapes and sizes are reimagining how they want to work, and moving towards more flexible and agile solutions. This is hugely encouraging for the sector – and for TOG.
“We’re delighted to welcome new, exciting names to the TOG platform and to see valued tenants returning, as well as expanding their space across our workspaces. We expect further positive updates in the months ahead as more people return to the office.”
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