Up 65% in Western Corridor

The confidence is flowing back into the Thames Valley market as agents experience a rise in lettings and key towns perform again. The figures bear this out with Jones Lang LaSalle reporting a 65% rise in office take up for the Western Corridor in 2010 compared with the previous year to a total of 5,090 sq.metres (2.1 million sq.ft.). The impetus in the third quarter came from a number of large deals. What is gratifying is that the average deal size was up substantially on 2009 at 1,830 sq.metres (19,700 sq.ft.). JLL’s James Finnis commented: “Office take up in the Western Corridor was relatively silient in 2010.

The deals were generally driven by lease events and consolidation rather than expansion, with the focus of activity remaining in town centres, which accounted for more than two-thirds of last year’s expansion.” Bracknell is a good example of this trend with Simon Fryer of Fryer commercial reporting that “the office market fared well last year with close to 18,580 sq.metres (200,000 sq.ft.) let which is not far off the five year average.” In his opinion, companies view Bracknell as “offering the best value office accommodation in the region.” As in the rest of the UK, the market is dominated by short leases. Fryer believes that Bracknell suffers from a shortage of quality small office suites, which Fenchurch Estates is seeking to remedy through their 2, The Braccans, London Road scheme, which was previously occupied by Johnson & Johnson. Fryer Commercial has let one unit and has other potential occupiers lined up.

At One the Braccans, Brocade Communications, a US technology firm, has leased 2,276 sq.metres (24,500 sq.ft.) at £193.68 a sq.metre (£18 a sq.ft.) through Studley. James Page of Page Hardy said: “With prime rents at around £193.68 a sq.metre (£18 a sq.ft.) in Bracknell and substantial incentives on offer, it has become very inviting for occupiers which has brought a good deal of activity over the past year.” He added that there is also a degree of demand from other use classes demonstrated by the sale of Benedict House to Fisher for serviced apartments. Strutt & Parker and Fryer Commercial were joint agents. “There are encouraging signs for 2011 which has started with a number of active requirements touring the town. There are also signs of strong demand from residential uses for some of the vacant offices,” Page said.