Member Article

Workspace bucks trend as London office take-up dips during EU uncertainty

Serviced workplace provider Workspace enjoyed modest increases across its portfolio in the first quarter of this year, defying the wider downward trend in the office space market around the EU referendum.

The London-based organisation, which has workplaces scattered across the capital, saw its total rent roll increase by 4.9% to £82m in the first quarter of the financial year, along with a 2% uptick in like-for-like rent roll (up to £46.8m) and a 3% increase in like-for-like rent per sq ft which rose to £22.69.

In a statement, Workspace’s Chief Executive, Jamie Hopkins, praised his firm’s ‘active’ quarter, describing it as a ‘good start to the financial year’, with the appetite of new and growing firms for office space seemingly unabated by the current political and economic climate.

However, the positive figures are in stark contrast to the wider London commercial market which saw a sizeable 22% drop in office uptake quarter-on-quarter in Q2, according to global real estate firm CBRE.

Central London office uptake also dipped to its lowest level since Q3 2012, 23% below the 10-year average and matched by a 3% drop in spaces currently under offer as many investors took a step back from ongoing deals until Brexit uncertainty passes.

Commenting on today’s figures and wider prospects in the market, Emma Crawford, Head of London Leasing at CBRE said: “As we emerge from a quarter characterised by referendum uncertainty, it’s not particularly surprising to see some occupiers opted to delay decisions until the political storm had passed.

“While the referendum may be behind us, the political uncertainty continues, but the appointment of a new Prime Minister is already helping to steady the ship.”

Hopkins also struck a cautionary tone, warning that the impact of last month’s referendum was still unclear and that the economic consequences of the vote were still to be worked out.

He said: “The full impact on the UK economy of last month’s EU Referendum is as yet unknown and we will continue to monitor the situation closely.

“However, I believe that Workspace, with its strong balance sheet, recognisable brand and compelling customer offer is well placed to take advantage of opportunities to continue to grow the business and deliver shareholder value.”