Landlord Workspace has played down reports about the death of the office, as it said there is still demand from businesses about taking space despite the pandemic.
Graham Clemett, chief executive of Workspace which has 60 office sites in London, said: “Despite near-term uncertainty, we are seeing signs that customers are starting to look through the pandemic.”
The boss said his firm has not been immune to the impacts from government guidance to work from home, and Workspace has seen tenants that are struggling exit leases.
A number of bosses have put new office plans on hold during the virus crisis, while there are market concerns some firms could look to embrace remote working on a permanent basis.
Clemett told the Standard: “The death of the office is probably being significantly overstated, but people are more selective about what they want.”
He pointed to some would-be occupiers being attracted to flexible leases Workspace offers. It gives businesses leases from two years, with options to exit at six months.
Interest in space has been higher from ecommerce, creative and fintech companies, he added.
Average enquiries per month in the quarter to December 31 totalled 672. That is still much lower than the 1001 for the same months last year, but interest comes despite scores of office staff continuing to work remotely.
Like for like occupancy was down by 3.4% in the quarter to 82.1%, driven by the exit of tenants that had given notice to leave earlier in the year.
Clemett said: “The timing and pace of our recovery will depend on the rollout of the Covid-19 vaccines and lifting of Government restrictions.”
