Tuesday, 1 June 2010

Rents hold up in Reading

Reading has been hit hard in the recession with office lettings down 67% last year to 12,166 sq.metres (130,955 sq.ft.). The report from Hicks Baker notes that “many of the occupiers with lease breaks or expiries who were expected to fuel demand in 2009 chose to stay with a safety first, do nothing approach coinciding with landlords prepared to be flexible in order to retain them.” Stephen Head of Hicks Baker: “There is still a lack of demand and commitment but there is still more chance of trophy deals this year than in 2009.There are some grounds for optimism because Grade A rents have remained robust despite weak demand.”

The slow market has
not deterred either deals or new development proposals. For example, Heineken is considering a mixed use scheme on its 62 acre Berkshire brewery site, which came with its take over of Scottish & Newcastle. Salmon Harvester Opportunity Fund, the joint venture of Salmon Harvester and NF Mutual, has bought the 20,690 sq.metres (222,713 sq.ft.) Stadium Way Industrial Estate, Reading for £17.4 million, a yield of 7.25%. RO Developments has also continued an active policy and is now marketing its 1,529 sq.metres (16,457 sq.ft.) newly refurbished One Manor Park. ROD has three other adjacent properties on Basingstoke Road, Reading.

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