The office landlord Workspace Group said only half of its customers had paid their rents by the end of March, while a large number have sought relief. Workspace added that it expects a significant hit to rental income in the coming weeks, too.
Shares in the company jumped yesterday after it told investors it is cutting costs and capital spending in a bid to mitigate the impact of the decrease in rental income. The company said it still expects profits for the year to March 31 to be in line with market expectations, and has not decided whether to pay a final dividend.
The Financial Times considers the challenges facing Workspace and WeWork, and says the silver lining will be that small businesses getting back on their feet after the crisis “might be looking for more flexible premises which offer shorter leases.”