Workspace occupancy falls as large tenants vacate Camden site

Published 16/10/2025, 07:50
 Workspace occupancy falls as large tenants vacate Camden site

Investing.com - Workspace Group PLC, London’s flexible workspace provider, on Thursday reported a 2.3% decline in like-for-like occupancy to 80.0% for the second quarter ending September 30, 2025, primarily due to large tenants vacating space at The Centro Buildings in Camden.

The company completed 326 new lettings during the quarter with a total rental value of £7.3m per annum, while like-for-like rent per square foot increased slightly by 0.1% to £47.55. However, like-for-like rent roll decreased by 3.2% to £107.1m.

The occupancy decline was largely attributed to Win Technologies vacating 43,000 square feet at The Centro Buildings, which alone represented 1.7% of the occupancy drop.

"This has been a busy quarter of solid progress in our strategy to Fix, Accelerate and Scale our business and embed operational excellence," said Lawrence Hutchings, Chief Executive Officer. "Our efforts to stabilise and rebuild occupancy by improving customer retention and conversion to lettings are starting to bear fruit, with 326 lettings completed in the quarter."

The company has made progress on its disposal strategy, exchanging or completing on £52.4m of low-conviction assets against its £200m target. These disposals were completed at 1.6% below March 2025 book value and at a combined net initial yield of 3.5%.

Workspace has also delivered £2m in annualised efficiencies by streamlining its central cost base and is advancing plans to provide specialized offerings to fast-growing industries in high-conviction locations.

The company maintained a robust balance sheet with £167m in cash and undrawn facilities, with a proforma loan-to-value ratio of 35% based on the March 2025 valuation.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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