Workspace records ‘resilient’ office demand in quieter quarter

Workspace has reported that demand for office space remained “resilient”, with momentum building into the second quarter.

In the three months to June, Workspace saw 307 new lettings with a total rental value of £8.5m per annum.

The provider of office space said that enquiry levels were lower than last year in what is typically a quieter period but that there has been an “improved conversion to viewings and lettings”.

The firm said the like-for-like rent roll was up 1.2 percent in the quarter to £111.8m.

Its occupancy rate was unchanged on the previous quarter, standing at 88.2 per cent at the end of June.

“It has been a good start to the year with occupancy stable and continued pricing improvements in the first quarter, reflecting the resilience of our diverse SME customer base and the appeal of our distinctive, flexible offer,” Graham Clemett, chief executive at Workspace said.

“Looking ahead, our scalable operating platform puts us in a strong position to continue to deliver near and long-term income and dividend growth, and we move into the second quarter of the year with positive momentum,” he continued.

Workspace, which was established in 1987, manages 4.4m square feet of flexible office space across 74 locations in London and the south east.

The firm invests in many different areas across London, “breathing new life into old buildings and creating hubs of economic activity”.

Since the end of March, Workspace has agreed to sell two small ‘non-core’ properties in Reading and Staines and an industrial estate in Folkstone.

It hopes to complete the refurbishment and extension of Leroy House in Islington in September. This will be Workspace’s first Net Zero building.

“We are progressing with the disposal of non-core assets, recycling capital to invest in accretive refurbishment projects across the portfolio,” Clemett added.

The firm said its balance sheet remains “robust” with £172m in cash and undrawn facilities.