Although a strong Q4 end to the year in the Thames Valley Office Market, 2017 annual take-up in the fell back slightly, in comparison to 2016. The active sectors were technology media and telecommunications and Finance Banking & Insurance with Bracknell and Reading seeing the most take up, according to the latest research from commercial property company Lambert Smith Hampton (LSH).
The Thames Valley Office Market Pulse, which provides investors, occupiers and developers with detailed insight across the region, found that enquires, supply and demand all fell behind year on year with total take-up to the end of 2017 at 1,718,724 sq ft against 2,083,231 in 2016.
Nick Coote, Head of LSH Thames Valley comments “We finished the year strongly including a 56,750 sq ft office letting in Maidenhead, with this plus our vision of Q1 transactions we have great confidence for an active 2018.”
The investment market in 2017 saw a total take up of £1.88bn against £2.28bn in 2016. This is due to a lack of stock with demand remaining strong from UK Institutions, Overseas Buyers, Property Companies and Private Investors. Overall, South East office transactions have maintained at recent levels of volume exceeding £4bn.
Charlie Lake, Director of Capital Markets at LSH said “As the most established office location outside of central London, the Thames Valley continues to attract a variety of investor demand from a Global audience. The established business parks have attracted overseas equity, enabling deployment of significant capital in single or combined estates.
We have also seen continued appetite from Local Authorities and also the UK Institutions focussing on town centre opportunities. With the supply and demand dynamic in the occupational market looking encouraging for 2018, the challenge for investors will be sourcing suitable opportunities in an increasingly tight market.”
