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Office enquiry levels down 33% at Workspace Group

Office enquiry levels down 33% at Workspace Group

Workspace Group, the flexible office space provider, has reported tenant enquiry levels were 33% down on last year, in a quarterly business update.

It said average monthly enquiries in the final quarter of 2020 (the third quarter of its financial year) was 672, versus 1,001 in the same period in 2019.

Lettings, however, were at a similar level, with 109 lettings per month in the fourth quarter of 2020 versus 113 in 2019.

Like-for-like occupancy was down 3.4% in the quarter to the end of December 2020, to 82.1%. The group said this was driven by the exit of tenants that had given notice to leave earlier in the year.

Rent per square foot reduced by 5.3% to £38.46, with half the decline due to short-term lease incentives (such as rent free periods) that it said would unwind over the next six months.

The combined impact of the drop in like-for-like occupancy and rent per square foot in the quarter resulted in a 9.1% fall in like-for-like rent roll, to £89.8m.

The group has collected 82% of rent for the quarter to the end of March 2021 (the fourth quarter of its financial year) and 91% for the final quarter of 2020 (the third quarter of its financial year).

It has a conservative debt profile, with a loan to value (LTV) of 23%. It said significant headroom exists on all debt covenants and it has £132m of cash and undrawn facilities.

WKP : Office enquiry levels down 33% at Workspace Group

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