The post-pandemic era for the flexible workspace industry has proven once again to rotate around acquisitions, consolidations, and mergers.
Further supporting this trend, The Office Group and Fora have announced they will seek to merge and create a company with over 3 million square feet of space across Germany and the UK.
The merger is subject to regulatory approval, but if it moves forward, the combined companies will be valued at around £1.5 billion.
This is just one of many consolidations that have occurred in the post-pandemic flexible office era.
For instance, IWG and The Instant Group announced that they would be merging their digital assets just last week. This deal will create “the world’s largest independent marketplace for flexible workspace,” according to the Instant Group.
Earlier this month, flexible office company Workspace also announced that it would be acquiring McKay Securities for £272 million, allowing the firm to expand its office portfolio in London.
As businesses begin to bring their employees back into the office and embrace a more hybrid future, operators are navigating new ways to address the growing demand for flexibility alongside low occupancy rates.
By incorporating modern amenities, a hospitable environment, and flexible leases, the industry hopes to stand apart from traditional office spaces that some companies may be tempted by as they bring staff back in.
“Businesses are increasingly recognising that the workplace is no longer a commodity, but rather a space that can be used to actively drive improved productivity, collaboration and the wellbeing of their teams,” said Enrico Sanna, CEO of Fora.
Through the new merger, Sanna will serve as CEO, while Fora cofounder Katrina Larkin will serve as chief environment, social, and governance officer. Additionally, The Office Group cofounders Olly Olsen and Charlie Green will be executive chair and presidential, respectively.
