Workspace Group reports ‘resilient’ customer demand in the fourth quarter
Flexible office space provider Workspace Group reported resilient customer demand in the fourth quarter ending March 31st, completing 343 new lettings.
The FTSE 250 company said it saw “significant customer activity” over the year as a whole with 1,238 lettings completed with a total rental value of £31.3m.
Rental growth also edged upward by 9.6 per cent when compared to the exact same period a year earlier.
Workspace Group also said it increased its like-for-like rent per square feet, rising 1.9 per cent in the quarter, and is up 10.4 per cent in March 2023, to £44.27.
The business, which has 78 locations across London and the South East, said occupancy was down very slightly to 88.1 per cent, compared to 88.4 per cent at the end of last year.
Outgoing chief executive Graham Clemett said: “We have had another year of strong trading, with continued demand for our offer delivering double-digit rent roll and pricing growth in the year.
“We have made additional progress on disposals, recycling capital efficiently to invest in our value-enhancing programme of refurbishment projects across the portfolio, while further strengthening our balance sheet.”
He added: “As the leading provider of flexible workspace to London’s SMEs with a track record spanning more than 35 years, we remain well-positioned to capitalise on the growing shift towards flex and to support the SME community – the unsung heroes of the Capital’s economy.”
The boss previously told City A.M. that Wework’s bankruptcy would “definitely give the company some benefit”.
He said: “Just in terms of their [Wework’s] model… they don’t own their buildings, we own all our buildings, they lease out. They had expensive leases, and they couldn’t really offset that with the income they could make off their customers.”