Workspace hails resilient demand in Q2 but says strikes, hot weather dented activity

Flexible officer space provider Workspace said on Thursday that underlying demand in the second quarter was "resilient", although activity levels were dented by extreme hot weather and tube and rail strikes.

In an update for the quarter to 30 September, the company said it saw a further improvement in pricing, with like-for-like rent per square foot up 1.3% on the quarter and 4% in the half year to £38.59.

It also highlighted strong conversion of demand into lettings, with 317 lettings completed in the quarter and 642 lettings in the first half, with a total rental value of £17.5m

Like-for-like occupancy was stable at 89.6%, while LFL rent roll was up 3.6% in the first half to £94.5m.

Chief executive Graham Clemett said: "Our trading performance in the first half of the year has been good with resilient demand, stable occupancy and improving pricing levels. It's a testament to our understanding of the needs of our SME customer base who want flexible, quality space at competitive prices - which we can offer in a unique portfolio of well-located properties across London.

"There are clearly challenges ahead in light of the wider economic issues and inflationary cost pressures facing the country, but we are confident in our ability to navigate successfully through them. Our SME customers have demonstrated through many previous economic cycles their ability to adapt and in many cases prosper in these fast-changing times."