Thames Valley office market resilient to face turbulent times ahead
The Thames Valley office market is well-placed to withstand the considerable challenges of the year ahead, according to the 2016 edition of Lambert Smith Hampton’s annual Thames Valley office market report.
Across the Thames Valley as a whole, despite Brexit uncertainty, LSH predicts occupier demand will remain steady against a backdrop of falling supply, leading to increasing rents in ten out of eleven centres and solid investor interest. Speculative development will continue across the region, centred in Elizabeth Line locations and town centres.
Nick Coote, head of the Thames Valley for Lambert Smith Hampton, said:
“Relocation is driving demand and supply in the Thames Valley and this is set to continue, albeit at a slower pace than if the UK had not voted to leave the European Union. We are seeing an increasing amount of relocation and consolidation within the region already and expect inward movement to add to this as major occupiers look to move out of London. Those areas of the Thames Valley with high quality supply and access to good labour markets and transport hubs will thrive.”
Charlie Lake, capital markets director, Lambert Smith Hampton, adds:
“The diversity of the existing occupier base and current demand in the Thames Valley is a positive, however, it is inevitable that medium term business decisions will now be put on hold until the future becomes more predictable. The region benefits from global investment demand and with the backdrop of a weaker pound, the characteristics of securely let prime buildings at sensible rental levels will still prove popular.
“Particular attention to the fundamentals of micro-location and property specification will be key to ensuring investment opportunities are secured in these challenging but opportunistic conditions.”
To see an overview of the Thames Valley office market, click here or to receive a copy of the full report, including the forensic breakdown by centre, please email rwilkinson@lsh.co.uk
