Strong demand boosts rent roll at Workspace

Workspace Group reported a jump in lettings on Thursday, on the back of strong demand for flexible office space.

Updating on second-quarter trading, the London-focused landlord said it had completed 322 new lettings in the three months to 30 September, with a total rental value of £8m per annum.

The like-for-like rent roll was ahead 3% in the quarter, and 6.3% in the half year, to £108.6m.

Pricing also improved, with like-for-like rent per square foot up 3.3%, the nine consecutive quarterly increase.

Occupancy was broadly stable, dipping to 88.7% from 89.2% at the end of the first quarter.

Graham Clemett, chief executive, said: “Space requirements are undoubtedly changing, which is playing to our advantage. Our customers want a great working environment, in the right place, with true, all-round flexibility – not just a shorter lease – at good value.

“This is driving strong demand and with occupancy stable at around 90%, the resulting pricing tension enables us to continue to improve rents.

“We enter the second half in a good position. Although mindful of the wider economic challenges, we are confident we are well placed with a differentiated offer that resonates with London’s SMEs.”

As at 1015 BST, shares in the real estate investment trust were up 2% at 491p.

Workspace, which owns and operates 4.7m square foot of space at 79 locations in London and the south east, is due to publish interim numbers on 21 November.