Resilient demand in quiet period boosts Workspace

Flex office owner and operator Workspace Group has seen rents nudge up by 1.2% in the three months ended 30 June. Like-for-like rent roll for the period totalled £111.8m, with like-for-like rent per sq ft also rising by 1.2% to £46.28 per sq ft. Workspace’s total rent roll reduce by £0.1m in the first quarter to £143.3m as a result of non-core disposals. Like-for-like occupancy was stable at 88.2%. Chief executive Graham Clemett said: “It has been a good start to the year with occupancy stable and continued pricing improvements in the first quarter, reflecting the resilience of our diverse SME customer base and the appeal of our distinctive, flexible offer. “Looking ahead, our scalable operating platform puts us in a strong position to continue to deliver near and long-term income and dividend growth, and we move into the second quarter of the year with positive momentum.” Over the course of the period, Workspace said that it had seen resilient demand in what was typically a quieter quarter. While enquiry levels are lower, it said there had been an improved conversion to viewings and lettings, with 307 new lettings completed with a total rental value of £8.5m. Since 31 March, Workspace has exchanged on the sale of two small non-core office properties in Reading and Staines and an industrial estate in Folkstone, for a total of £8.1m. A total of £26.4m in cash has been banked by the business from the completion of non-core disposals in the first quarter.