Workspace Group Navigates Market Slowdown, Enquiries Down in Q3

Workspace Group (LON: WKP), London's prominent flexible workspace provider, issued a third-quarter business update, revealing performance aligned with expectations amid a challenging market environment.

While enquiries dipped due to market sluggishness and Autumn Budget-related uncertainty, the company signals confidence in its strategic direction.

The report highlights improvements in enquiry-to-letting conversion rates, climbing to 19% in Q3 from 16% in Q2 and 14% in Q3 2024/25. Completed lettings numbered 322, generating £10.2m in rental value, compared to 273 lettings and £6.0m in the same period last year. Like-for-like occupancy saw a modest increase of 0.9% to 81.2%, but like-for-like rent per sq. ft. declined by 1.4% to £47.13, resulting in a slight 0.1% reduction in like-for-like rent roll to £104.1m.

Workspace Group is actively optimizing its portfolio through strategic asset disposals. The company exchanged or completed £67.9m of low-conviction asset disposals during the quarter, bringing the total to £106m against a £200m two-year target. Additionally, the company has started capital improvements to high-conviction properties.

Workspace Group is expanding its reach through partnerships, signing an agreement with Qube to create a hub for content creators. The company is also preparing for Qube's lease start date by vacating The Old Dairy in early February.

The company maintains a robust financial position, reporting £221m in cash and undrawn facilities, up from £167m in September 2025. Loan-to-value (LTV) stands at 35%, based on the September 2025 valuation, a slight improvement from 36% in the previous quarter.

Dave Benson, Chief Financial Officer, Workspace Group, commented: “We are encouraged by the progress made in the quarter against our Fix, Accelerate, Scale strategy… these signs give us confidence that our strategy is delivering and that we are on the right path.”