Workspace says it’s not all doom and gloom for the capital
Workspace said that despite the “economic doom and gloom”, the capital was still splashing the cash on offices.
The London focused flexible working space said profits after interest climbed 33.5 per cent to £29.1m in the half year, driven by a 36.8 per cent (£15.1m) increase in net rental income to £56.1m and ongoing demand for City setups.
Speaking with Morning Wire chief finance officer Dave Benson said popularity boomed across tech hubs like Shoreditch and riverside haunts like Southbank, as Londoners embrace more hybrid working patterns.
Like-for-like rent roll was also up by 3.6 per cent to £94.5m, with occupancy stable at 89.6 per cent. The average rent jumped four per cent for Workspace.
The firm also backed its ability to ride out the wider macroeconomic challenges, and said it was “focused on tightly controlling our own costs and prudently managing our balance sheet”.
Unlike many counterparts, Benson said the firm had been able to weather the inflationary storm by hedging its energy costs until October 2024.
This confidence sits in contrast to its US rival WeWork, which said it would be culling 40 underperforming sites in a bid to save cash last week.
WeWork’s own chief finance officer Andre Fernandez said inflation was particularly challenging for its European business, especially when it came to energy bills.
However, serviced office provider IWG said earlier this month that hybrid work patterns were set to bolster the flexible working business.
The Jersey registered company said it would be looking to capitalise on firms seeking to reduce their real estate costs in macroeconomic uncertainty with flexibility.