Reading: “next office hotspot”
Wed 29 April 2015, 4:14 pm
Investment management firm, JLL, is predicting the Reading office market will be the “next hotspot” for businesses to relocate to, according to a new report, entitled ‘The new geography of office demand: where next in the UK?’
The report pinpoints Reading as a ‘growth leader’ in the UK office investment market and a focus for investors and developers.
Angus Minford, director for south-east office investment at JLL, said: “Reading is already a core market in the Western Corridor and has shown strong economic growth, which has translated to a strong recovery in the office market.
“The town has a well-established centre and out-of-town market with transport links and it is anticipated to see annual rental growth of almost 4.5% to 2019.
“Value-add opportunities are attractive to the wider investor market where they can reposition assets and benefit from the value growth already seen in prime categories.”
Reading is home to a number of ‘tech’ occupiers, such as Verizon, Microsoft, Oracle and Symantec and the area’s popularity has resulted in consistent rental growth since December 2012.
Ollie McLeod, senior surveyor at JLL’s south-east office agency, said: “The development of schemes such as Thames Tower and Forbury Place is timely, as take-up has depleted good-quality built stock and record rents are being achieved. Landid’s One Valpy is a prime example of this.
“Reading’s road and rail connectivity makes the town an attractive proposition to occupiers, which is set to be further cemented by the arrival of Crossrail at Reading station in 2018.”