Flexible workspace provider, Workspace Group Plc, argues that, despite early signs of recovery, rents will likely stay subdued in the coming months as pressure will remain.
The company’s recent full-year earnings reported that vacancies stabilized in the fourth quarter of 2020. While leasing and enquiries are back to pre-COVID levels, the actual use of Workspace Groups‘ locations sits at around a third of pre-COVID levels.
Despite the fact that company shares fell by 3.6% this morning, the company remains optimistic about the future and expects things to recover by September of this year. Until then, however, the company believes tenants have enough leverage to negotiate prices.