1. Home
  2. Real Estate
  3. Flexible leases will be a boon in the post-pandemic market: Workspace
Flexible leases will be a boon in the post-pandemic market: Workspace
Real Estate

Flexible leases will be a boon in the post-pandemic market: Workspace

18 Nov 2021 2 Min Read CW Team
On Wednesday, Workspace, the London-focused office-space provider, said that the demand for its flexible leases, which allows tenants to extend or decrease space instantly, will be an advantage in the post-pandemic market.

Office space operators are meeting a rocky road to recovery after battling lower rental levels and steep valuation dips in the wake of the pandemic when clients moved to remote working or downsized or vacated spaces. Workspace, which renders unfurnished spaces to customers ranging from architects and florists to craft beer brewers and app developers, essentially has two-year, short-term leases with a chance for a six-month rolling break.

Chief Financial Officer Dave Benson told the media that the customers have the chance to increase or cut the space quickly, and they do not have to wait two years or even six months. Workspace recorded a pretax profit of 3.4 million pounds for the six months ended Sept. 30, its first profit since the pandemic against the loss of 110.4 million pounds a year back.

Peel Hunt analysts told the media that Workspace is without a doubt on the road to improvement, but they believe it will take some time. But, the rent roll remains about 25% below its pre-Covid level, and the valuer proceeds to mark down the portfolio, driven by decreasing market rents. Workspace shares were down 1.3% as of 1242 GMT.

The FTSE 250 firm, which helps small and medium-sized companies, has some 3,000 customers and holds 40 million sq ft space across 60 buildings in London. Workspace said that return-to-office trends after the lifting of Covid-19 curbs in England had so far focused on clients from e-commerce, tech and fashion design sectors. The firm registered usage of its centres at around 55% of pre-pandemic levels. It additionally declared the procurement of smaller rival The Bus works in Islington for 45 million pounds.

Image Source

On Wednesday, Workspace, the London-focused office-space provider, said that the demand for its flexible leases, which allows tenants to extend or decrease space instantly, will be an advantage in the post-pandemic market. Office space operators are meeting a rocky road to recovery after battling lower rental levels and steep valuation dips in the wake of the pandemic when clients moved to remote working or downsized or vacated spaces. Workspace, which renders unfurnished spaces to customers ranging from architects and florists to craft beer brewers and app developers, essentially has two-year, short-term leases with a chance for a six-month rolling break. Chief Financial Officer Dave Benson told the media that the customers have the chance to increase or cut the space quickly, and they do not have to wait two years or even six months. Workspace recorded a pretax profit of 3.4 million pounds for the six months ended Sept. 30, its first profit since the pandemic against the loss of 110.4 million pounds a year back. Peel Hunt analysts told the media that Workspace is without a doubt on the road to improvement, but they believe it will take some time. But, the rent roll remains about 25% below its pre-Covid level, and the valuer proceeds to mark down the portfolio, driven by decreasing market rents. Workspace shares were down 1.3% as of 1242 GMT. The FTSE 250 firm, which helps small and medium-sized companies, has some 3,000 customers and holds 40 million sq ft space across 60 buildings in London. Workspace said that return-to-office trends after the lifting of Covid-19 curbs in England had so far focused on clients from e-commerce, tech and fashion design sectors. The firm registered usage of its centres at around 55% of pre-pandemic levels. It additionally declared the procurement of smaller rival The Bus works in Islington for 45 million pounds. Image Source

Next Story
Infrastructure Energy
23 Nov 2024

REC Transfers HVDC Project to Power Grid

REC Limited has successfully handed over the Special Purpose Vehicle (SPV) for a High-Voltage Direct Current (HVDC) transmission project to Power Grid Corporation of India Limited (PGCIL). This strategic move aligns with the nation's objectives to strengthen its power transmission network. Key Highlights: Project Overview: The HVDC project, under the inter-state transmission system (ISTS) initiative, is a critical component of India's push toward robust and efficient electricity transmission. It aims to handle bulk power transfer across long distances while ensuring minimal losses. Role of RE..

Read More
Next Story
Infrastructure Transport
23 Nov 2024

NF Railway Collaborates with IIT Guwahati

The Northeast Frontier (NF) Railway has signed strategic Memorandums of Understanding (MoUs) with IIT Guwahati to foster technological advancements and improve railway operations in the region. This partnership focuses on innovative solutions to enhance safety, efficiency, and sustainability in rail infrastructure. Key Highlights: Purpose of MoUs: The collaboration aims to leverage IIT Guwahati's expertise in technology and research for implementing cutting-edge solutions across railway operations. Key areas of focus include: Automation and digitization in maintenance. Sustainability initiati..

Read More
Next Story
Infrastructure Transport
23 Nov 2024

Danapur Division Modernization Plans Revealed

The Railway Board has unveiled ambitious plans for the expansion and modernization of the Danapur Division, a critical hub under the East Central Railway. The initiative focuses on infrastructure development, enhanced passenger amenities, and operational efficiency. Key Highlights: Scope of Modernization: The Railway Board's blueprint emphasizes: Upgrading existing infrastructure to accommodate more passenger and freight traffic. Improving station facilities, such as platforms, waiting areas, and connectivity. Introducing advanced signal systems for safer and smoother operations. Freig..

Read More

Opinion Poll

Question : Which technological advancement do you believe will most transform the real estate industry in the coming years?

Latest updates

REC Transfers HVDC Project to Power Grid
POWER & RENEWABLE ENERGY
23 Nov 2024

REC Transfers HVDC Project to Power Grid

NF Railway Collaborates with IIT Guwahati
RAILWAYS & METRO RAIL
23 Nov 2024

NF Railway Collaborates with IIT Guwahati

Danapur Division Modernization Plans Revealed
RAILWAYS & METRO RAIL
23 Nov 2024

Danapur Division Modernization Plans Revealed

Indian Railways Deploys Kavach 4.0
RAILWAYS & METRO RAIL
23 Nov 2024

Indian Railways Deploys Kavach 4.0

KSR Bengaluru Station's Rs 1,500-Cr Makeover
AVIATION & AIRPORTS
23 Nov 2024

KSR Bengaluru Station's Rs 1,500-Cr Makeover

Southern India Rail Projects Progress
RAILWAYS & METRO RAIL
23 Nov 2024

Southern India Rail Projects Progress

Railways Introduces 1,000 General Coaches
RAILWAYS & METRO RAIL
23 Nov 2024

Railways Introduces 1,000 General Coaches

HBITS Leases Office Space in Thane
Real Estate
23 Nov 2024

HBITS Leases Office Space in Thane

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000