Workspace predicts businesses will want more flexible office options
Workspace could benefit from companies seeking more flexible office options when the Covid-19 lockdown lifts, the landlord said on Friday.
The offices firm, which offers flexible leases, often to SMEs and startups, said it saw a “significant slowdown” in enquiries from potential tenants from the end of March. That was the month that people were told to work from home if they could due to the coronavirus outbreak.
Since then there have been industry concerns about whether companies will still want new and existing offices in the future, due to how well many employees have adapted to working from home.
But Workspace’s chief executive Graham Clemett predicted his firm will still see good demand for space.
Clemett told the Evening Standard: “What we provide is a very attractive option.” He said Workspace offers flexible leases, and because it has a large number of sites (60), it has plenty of scope to help occupiers expand or downsize where needed across its buildings.
Clemett said: “Looking forward, we will undoubtedly see subdued levels of operational performance in the short term with a reduction in rental income. However, we expect that the structural shift in the office market towards flexibility will now accelerate more broadly.”
The boss added: “We believe that, with our well established flexible offer and the quality of our space and services, Workspace is ideally positioned to benefit as London recovers from the impact of the Covid-19 pandemic."
Workspace saw net rental income rise 10% to £122 million in the year to March.
Pretax profits dropped to £72.5 million from £137.3 million after the value of the estate was impacted by the virus crisis.
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