Shares in London-based provider of flexible offices Workspace (WKP) gained 4% to 829p after the firm posted a positive trading update for the quarter to September thanks to a pick-up in both rents and occupancy.
Like-for-like rent per square foot edged up 0.3% to £35.50 while occupancy rose 2.7% to 85.6% as more companies looked for flexible work spaces.
Monthly average enquiries were 935 during the quarter with viewings up to 629, a big improvement over 435 in the same quarter last year. Average lettings during the quarter were 138, although in September they jumped to 175.
Cash collection remained strong despite the government moratorium, with 97% of rent due for the quarter collected to date, ahead of the same quarter last year.
Chief executive Graham Clemett was upbeat on London’s prospects: ‘Our latest utilisation and occupancy figures show that London's small and medium businesses are leading the way back to the office and are optimistic about the future.
‘More than ever, the right office space in a great location with strong sustainability credentials and flexibility really matters to our customers and their employees’, he added.
Refurbishments were completed on a 59,000 square foot business centre in Ladbroke Grove and a new 41,000 square foot centre was opened in Stratford.
Meanwhile, the firm continued to refresh its portfolio with the sale of a property in Fitzroy Street close to Regent’s Park for £92 million and the purchase of The Old Dairy in Shoreditch for £43.4 million, adjacent to another of its offices.
With £318 million of cash and bank facilities, and just a 23% loan to value ratio on its existing properties, the company has plenty of capacity to invest in its pipeline of new sites.
