Workspace sees customer demand improve in Q2

Flexible office space provider Workspace said on Thursday that customer demand had improved in the second quarter of its trading year, with a strong pick-up in activity during September.

Workspace stated there was an average of 935 enquiries and 138 lettings per month in the quarter, while like-for-like occupancy was 2.7% higher quarter-on-quarter at 85.6% and the firm's like-for-like rent roll was 2.1% stronger over the first six months at £87.3m.

The FTSE 250-listed company said pricing had stabilised during the period, with like-for-like average rent per square foot up 0.3% in the second quarter to £35.50 after a 2.3% fall in the first quarter.

Strong cash collection was also seen during the quarter, with 97% of rent due for Q2 collected to date, ahead of the level of rent collected at the same point in the previous quarter.

Workspace also highlighted that it had seen a "significant increase" in customers returning to offices over the second quarter, with utilisation of its centres by the end of September peaking at 56% of pre-Covid levels mid-week, and 52% over the week as a whole.

Chief executive Graham Clemett said: "It's great to see London coming back to life, and our latest utilisation and occupancy figures show that London's SMEs are leading the way back to the office and are optimistic about the future. These are positive signs of momentum and further proof that our truly flexible offering is resonating in the evolving working world.

"The pandemic has made people appreciate that not all offices are created equal. More than ever, the right office space in a great location with strong sustainability credentials and flexibility really matters to our customers and their employees. We're perfectly positioned to benefit from this shift and we're very excited about the future as we continue to expand our property footprint across London."

As of 1005 BST, Workspace shares were up 4.07% at 830.50p.