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London

Reading on track to be next office investment hotspot says JLL


London - 29 April 2015 The Reading office market is predicted to be the next hotspot for investment opportunities, according to a new report by JLL.

The report, 'The new geography of office demand: where next in the UK?' pinpoints Reading as a 'growth leader' in the UK office investment market, with significant capital value growth achievement making it a focus for investors and developers.

Angus Minford, Director, 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 excellent 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 its popularity with occupiers has resulted in consistent rental growth since December 2012, leading to a wave of office development.

Ollie McLeod, Senior Surveyor, South East Office Agency at JLL said: "Reading is the focal point of speculative development activity in the Western Corridor, with 575,000 sq ft currently under construction in the town centre, due to complete between 2015 and Q4 2016. 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."