Workspace Group PLC (LSE:WKP), London’s flexible workspace specialist, has reported a 2.3% like-for-like decline in occupancy to 80.0% for the second quarter ending September 30, 2025. The drop was primarily driven by large tenants vacating The Centro Buildings in Camden.
The company completed 326 new lettings during the period, representing a total annual rental value of £7.3 million. Like-for-like rent per square foot edged up 0.1% to £47.55, but the like-for-like rent roll fell 3.2% to £107.1 million. A significant factor behind the occupancy decrease was Win Technologies leaving 43,000 square feet at The Centro Buildings, which alone accounted for 1.7% of the drop.
“This has been a busy quarter of solid progress in our strategy to Fix, Accelerate and Scale our business and embed operational excellence,” said Lawrence Hutchings, Chief Executive Officer. “Our efforts to stabilise and rebuild occupancy by improving customer retention and conversion to lettings are starting to bear fruit, with 326 lettings completed in the quarter.”
The company advanced its disposal program, completing or exchanging on £52.4 million worth of low-conviction assets toward its £200 million target. These sales were finalized at 1.6% below March 2025 book value and at a blended net initial yield of 3.5%.
Workspace also achieved £2 million in annualized cost savings through central cost base efficiencies and is progressing plans to offer specialized workspace solutions for high-growth industries in priority locations. The company ended the quarter with a solid financial position, holding £167 million in cash and undrawn facilities, and a pro forma loan-to-value ratio of 35% based on March 2025 valuations.
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