Hesitant recovery

The once dynamic Thames Valley office market is on course for a slow recovery after a difficult performance in 2009 when take up was the lowest since 2001 and 52% down on 2008. But it is a mixed picture with Reading continuing to languish but Bracknell on course for a strong showing as companies seek space. Cushman & Wakefield calculate the 2009 take up at 82,774 sq.metres (891,000 sq.ft.) but added that “the outlook for 2010 is brighter with the market expected to stabilise with the amount of office space likely to fall towards the end of the year.” The result of the tough 2009 was that average rent has dropped by 11.6% to £257 a sq.metre (£11.90 a sq.ft.), the lowest level since 2004.

Given the fact that the Thames Valley office market is the second largest in the UK, this means that tenants are in prime position for deals. That may not last because new development has dried up. It is also worth noting that according to C&W total requirements are 22,7612 sq.metres (2.45 million sq.ft.). The firm’s Charles Dady said: “When we look back in a year’s time, the first quarter of this new decade may well be regarded as the turning point of the cycle. The recovery will be gradual but areas where supply is most constrained the main CBDs, for example, will see a quicker turn around in fortunes as confidence returns.” To put it in context, there are three speculative developments in the area totalling 21,060 sq.metres (227,191 sq.ft.) and this should be compared with 18 buildings totalling 106,839 sq.metres (1.15 million square ft) in 2009. C& W reckon “the funding wheels will start to turn during this period and the next cycle may be closer than we think.” So that is encouraging. In the past the Thames Valley has gained with the recovery of central London, which is well under way. The hope now is that it will be an increasing influence.




The Thames Valley Commercial Property Register

The Thames Valley and Heathrow Commercial Property Register is a leading UK business property publication from Martin Austen Publishing. The aim of the publication is to offer a simple and effective means of finding Offices Space in Thames Valley , Serviced Offices in Thames Valley Commercial property in the Thames Valley area. You can also find the latest commercial property news for the Thames Valley region.