Workspace reaches £46.9m profit in offices surge

The boss of London-focused flexible office space provider Workspace has said that the return to work after the pandemic is offering a radical rethink of how staff approach their relationship to work as employers struggle to recruit in the white hot labour market.

Workspace posted full-year profits up 21% in the 12 months to March 31 to £46.9 million, driven by a 6.4% increase in net rental income to £86.7 million.

Its CEO Graham Clemett said companies would have to re-evaluate the way they approach recruitment to attract the best talent and that office spaces and the “softer elements” that businesses now provide would be key to winning the employment race.

“When you talk to the employers, a lot of them are struggling around how to get their staff back to work and I think all elements are hugely important,” he said.

“It’s the softer elements that are important to employees and in this fight for talent it’s hugely difficult for businesses to attract and retain staff now and these lighter aspects are becoming more and more important.” 

Mentioning initiatives such as Paws in Work that sees puppy therapy introduced into offices or even the introduction of the occasional ice cream van, he said that although these elements may seem a “little crass” they would be vital to reshaping the future of the work environment.

The company’s acquisition of McKay Securities for £272 million last month expanded its  portfolio of gross property assets to £2.9 billion with 5.5 million square feet of lettable space and added two key properties in Reading that would allow Workspace to take advantage of the opportunities delivered by the Elizabeth line.

Clemett said that the focus of Workspace would still “continue to be London”. However, he added as businesses rethink their space requirements that “there is a broader market out there”.

“There’s nothing magical about the M25. Woking and Reading, with good transport links, are equally as attractive as say Wimbledon or Richmond. We see a much broader opportunity for us,” he added.