A skilled workforce, good supply of property and strategic location are proving to be magnets for industrial and logistic occupiers looking for a more economic choice, and competitive rents in West Berkshire, according to the latest West Berkshire Property Market Industrial Update from Haslams Surveyors LLP.
At a crossroads of southern England connecting London, Bristol, Birmingham, and Southampton, West Berkshire is already a strategic location for leading companies, including John Lewis, and Amazon. And this year, multi-national software and cloud services giant, TP-Link moved to A34 Connect, Newbury, after 12 years in Reading.
Also while the Berkshire industrial market is seeing rents of over £20 per sq ft in Slough, areas of West Berkshire are proving more affordable with rents between £12-13 per sq ft, according to the report.
The Haslams’ report states, there is distinct rent saving moving westwards along the M4 corridor, with average rents between £12-13 per sq ft: “in contrast, rents in Bracknell and Reading are now in the mid-high ‘£teens per sq ft’, with units in Slough seeing rents as high as ‘mid £20s per sq ft’. The West Berkshire market offers an attractive cost-saving opportunity for occupiers.” While the area also boasts a skilled and educated working population of just under 86,000.
The region features several large industrial parks including Greenham Business Park to the south of Newbury, Hambridge Lane, Kennetside Industrial Estate to the east of Newbury, Colthrop Business Park in Thatcham and the Theale industrial area at J12 of the M4.
Ed Ponting, partner, Haslams, said: “As our latest report demonstrates, the West Berkshire industrial sector has continued to evolve as the accessibility and amenity offering of the location is fully realised by landlords, developers and occupiers.”
Cost saving is also a key factor bringing occupiers further west, said Ponting, as prime rents in West London and Slough have soared well above £20 per sq. ft.
Added to this are recent road and rail improvements completed through the Thames Valley, West Berkshire giving closer than before links to London and Heathrow.
“The location has an exciting opportunity to rebrand itself if development on the ground continues,” said Ponting, who added: “Recent new developments and quality refurbishments in West Berkshire have been underpinned by consistent rental growth and a lack of stock, however, supply is again beginning to dwindle as seen across the wider region.
“As build costs flatten, yields harden, and with some political certainty, at least domestically, we are hopeful that an invigorated development cycle can emerge in the coming months.”
