Office firm Workspace extends rent cut period for businesses

Office landlord Workspace on Tuesday said it will extend a 50% rent cut for tenants to the end of June, in a move that costs it around £5 million per month.

The company is trying to help businesses ride out the coronavirus crisis. The firm, which offers flexible leases, often to SMEs and startups, first gave the rent reduction in April. It said at the time it would apply for the lockdown period.

Workspace’s chief executive Graham Clemett today said: “Despite the relaxation of some of the lockdown measures recently announced, it is still early days for many of our customers as they look to rebuild their businesses. We are keen to continue to support them at this difficult and uncertain time, so have committed now to maintain our 50% rent reduction to the end of June.”

Clemett previously told the Standard the rent reduction plan has an impact of around £5 million per month on Workspace.

Numerous businesses still have staff working from home, leaving a number of offices largely unoccupied.

FTSE 250 company Workspace has been working on measures to help occupiers maintain social distancing when they return to offices. For example, the doors will be kept open as people enter and exit buildings, reducing the number of touch points.

In common areas, new floor and wall signage will emphasise social distancing, and receptionists will sit behind screens.