I think it's the way dbms_output.put_line work it's just trim all trailing space so even if u embeded CHR(32) in the begining it will not work.

exec dbms_output.put_line(char(32) ||chr(32) || 'There are space');
There are space

Though same works if you do
select chr(32)||chr(32) ||'There are space' from dual;
There are space

So in order to make it worky just add either chr(10) or any other character just before ' There' or chr(32).