U.K.’s Workspace reports stable rents amid slight occupancy decline

Published 16/07/2025, 08:30
© Reuters

Investing.com -- Workspace Group (LON:WKP) PLC, London’s provider of flexible work space, on Wednesday reported stable like-for-like rent per square foot at £47.42 in its first quarter ending June 30, 2025, while like-for-like occupancy declined slightly by 0.3% to 82.2%.

The company completed 278 new lettings in the quarter with a total rental value of £7.1 million per annum.

Like-for-like rent roll decreased by 0.3% to £111.6 million. Workspace shares fell 1.3% following the announcement as investors responded to the modest decline in occupancy metrics.

"While our new strategy will take some time to fully implement, we are moving forward at pace to fix our backyard and accelerate our transformation, whilst identifying opportunities to scale the business," said Lawrence Hutchings, Chief Executive Officer of Workspace Group.

The company has made progress on its strategy of disposing non-core assets, completing £15 million in sales since March 31, 2025, including Q West in Brentford for £10.3 million and The Shaftesbury Centre in Ladbroke Grove for £4.7 million.

Both sales were in line with March 2025 valuations at an average net initial yield of 6%. An additional £15.4 million of exchanged disposals are expected to complete within the next 12 months.

Workspace maintained a robust balance sheet with £267 million in cash and undrawn facilities, while its loan-to-value ratio remained flat at 34% based on March 2025 valuation.

The company noted that larger customers continued to vacate in the quarter, with further decline in occupancy expected in the second quarter due to a large customer vacating at The Centro Buildings in Camden.

To counter this trend, Workspace is implementing initiatives to support customer retention and attract new clients, including targeted local marketing for lower occupancy centers.

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