Workspace expects robust H2 rental growth in London

Workspace Group anticipated robust rental growth in the latter part of the ongoing fiscal year, following the recording of a half-year loss due to the impact of elevated interest rates on the valuation of its properties, as announced by the London-centric provider of flexible office spaces. Amid broader economic concerns, flexible space operators like Workspace demonstrated strong performance on the operational front. Tenants, navigating through uncertainties, increasingly favoured short-term leases and periodically reviewed their strategies. According to the company's statement, they observed sustained demand and projected a further increase in the average rent per square foot in the second half of the year. The London-listed entity, catering primarily to small and medium-sized enterprises and entrepreneurs, reported successfully attracting some former UK clients of WeWork. This move came after the U.S.-based company declared bankruptcy earlier in the month. Workspace, with a distinct business model and ownership of its buildings, differs from WeWork. However, Dave Benson, the company's finance chief, suggested that WeWork's restructuring could prove advantageous for Workspace.