(Reuters) – IWG Plc, a global office rental agency reported a slightly lower third-quarter income on Tuesday. The resurgence worldwide COVID-19 cases has further hampered the clients’ plans for a return to work.

Concerns for offices space providers have increased due to the reemergence in many countries of cases and subsequent tightening in certain places of curbs. Businesses opt for shorter leases while employees are still able to work remotely.

IWG reported that occupancy in its Pre-2020 operations was 72% for the third quarter. This is only slightly higher than 70.1% the previous year, despite lifting heavy pandemic restrictions.

The Switzerland-headquartered company, which has centres in more than 3,300 locations across 110 countries, said group revenue was 550.8 million pounds ($752.1 million) in the three months ended Sept. 30, down 0.3% from the year-earlier period that was hit by restrictions and uncertainty.

However, Regus and Spaces brand owner, which is listed in the UK, stated that the outlook for this year was “encouraging”.

In a trading update, the company stated that “the momentum in trading performance had accelerated during third quarter”, with progress being made in all key territories. The outlook for the rest of the year is positive.”

According to the firm, it is on track for achieving targeted annualized run rate cost savings of approximately 320 millions pounds per year.

($1 = 0.7323 pounds)