Workspace Group upbeat as demand for flexible office space rises

Workspace Group saw customer demand hold up in the three months to March, despite industrial action over the period, with an average of 932 enquiries per month.

The FTSE 250 firm and office space specialist said it was successful in converting that demand into new lettings in its fourth quarter, with 341 new lettings completed during the period, bringing in a total rental value of £8.3million a year.

The group reported strong pricing momentum, with like-for-like rent per square foot up 2.7 per cent during the quarter and 9.4 per cent since March last year, reaching £40.61.

Demand: Workspace Group has claimed customer demand remained strong in the three months to March

The company’s like-for-like occupancy rate remained stable at 89.1 per cent, with a slight dip from 89.2 per cent back in December. 

Like-for-like rent roll increased  by 1.2 per cent, or £1.2million, in the quarter and was ahead by 7.2 per cent since March last year to £97.7million.

The group’s total rent roll rose by £2.2million, or 1.6 per cent, in the quarter to £140.1million.

The £54million sale of the residential component of the Riverside mixed-use redevelopment in Wandsworth was completed in March, which was in line with the September valuation.

Workspace said its balance sheet remained ‘robust’, with a proforma loan-to-value ratio of 32 per cent based on the 30 September valuation, and an average maturity of drawn debt of 4.1 years.

It added: ‘We have seen strong demand in the fourth quarter despite the disruption caused by tube and rail strikes.’ 

Boss Graham Clemett, said: ‘We saw a strong fourth quarter of trading activity with customer demand enabling us to continue moving our pricing forward.

‘This performance reflects the continuing attractions of our offer to the changing needs of businesses looking for space.

‘We provide flexibility in terms of both lease length and size of space at affordable prices within high-quality sustainable buildings, in well-connected locations across London.’

Clemett added that while the current economic backdrop was ‘challenging’, the group has a solid balance sheet, with the bulk of its debt in long maturities. 

He added: ‘This will be further enhanced as we progress with the disposal of non-core assets.

‘Our distinctive offer, proven operating track record and ownership of an extensive property footprint across London sets us apart from others in the growing flexible space market.

‘This all provides us with an exciting opportunity to deliver sustainable long-term growth.’

Workspace shares rose today and were up 0.22 per cent or 1.00p to 460.40p in late morning trading.  

This post first appeared on Dailymail.co.uk