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(Alliance News) - Workspace Group PLC on Thursday reported rental growth in the first half of its financial, buoyed by strong demand for flexible office space in the wake of the Covid-19 pandemic, which left many companies trapped in long leases for under-occupied offices.
The London-based flexible workspace provider said that, in the six months that ended September 30, like-for-like rent was up 6.3% from a year before. Like-for-like rent per square foot was up 6.6%. Quarter-on-quarter, like-for-like rent per square foot climbed 3.3% to GBP42.98 as at September 30 from GBP41.60.
Chief Executive Officer Graham Clemett 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."
Workspace noted sound customer demand with 323 new lettings completed in the quarter, bringing in total rental revenue of GBP8.0 million per year. Total rent roll as at September 30 grew to GBP141.9 million per year from GBP140.1 million at March 31.
Looking ahead, CEO Clemett said the company started the second financial half year in a strong position despite wider economic challenges.
Workspace shares were 1.4% higher at 486.60 pence each on Thursday morning in London.
By Tom Budszus, Alliance News reporter
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