Increased demand is driving take-up in Reading as a result of transport infrastructure improvements and the development of quality grade A buildings, according to Lambert Smith Hampton’s annual Thames Valley Office Market report.
– Take-up in 2015 was at its highest level since 2007, driven by town centre demand.
– 2016 has continued this positive level of take-up, although the main focus has shifted to out-of-town lettings.
– Supply has increased due to speculative development which is largely focused in the town centre.
– Prime headline rents in the town centre have remained stable at £33.50 per sq ft since 2014 and out-of-town rents have increased to just 3% below this at £32.50 per sq ft.
Nick Coote, head of the Thames Valley for LSH, explains: “Reading’s take-up in 2015 was the highest since 2007, driven in large measure by town centre demand.
“The supply of grade A offices in Reading has increased in the town centre, due to a large amount of speculative development stimulated by the expectation of business relocations from London and the wider Thames Valley Region into Reading. This regional relocation trend is being illustrated by SSE, Thales and Bayer all consolidating their Thames Valley presences into Reading. The stimulus for this demand is the improving rail infrastructure/connectivity which is providing a wider labour market reach for occupiers.
“The market will now be looking for evidence of London sourced relocations over the next 12 months.”
