Workspace swings to a loss as WFH hits London office sector, but lettings momentum now picking up

Workspace has a number of office buildings in London

(Workspace)

Workspace has dropped into the red, after the offices landlord was hit by the working from home guidance, but it said momentum has picked up recently.

The landlord, which has 60 sites in London and offers flexible leases, often to SMEs and startups, said the value of its estate declined by £258 million to £2.3 billion in the year to March.

The FTSE 250 firm saw rental income decrease as companies exited leases when allowed, or downsized, as government guidance encouraged people to work from home. Workspace also offered rental discounts at the start of the crisis.

It recorded a pre-tax loss of £235.7 million compared with a profit of £72.5 million. That marks its first annual loss in 12 years.

However, the firm, which offers shorter leases than many other landlords, could benefit as many bosses seek more flexible space they can use as part of hybrid working plans. Numerous companies have said they plan to offer a mix of home and office hours post-pandemic.

Workspace chief executive Graham Clemett told the Evening Standard that currently “viewings, enquiries and lettings are running at or above pre-Covid levels”.

Clemett also said: “The role of the office in our working lives is being re-examined and all the signs highlight flexibility, quality and wellbeing becoming more important for businesses and their people. We are perfectly positioned to benefit from this accelerated shift in attitudes.”

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