commercial property 55 Commercial property update on Reading
A town that’s a city that needs a new ‘wow’ business occupier
'Reading is on the cusp of being the next go-to location for the new wave of commercial occupiers,' says Neil Seager, partner at Haslams Chartered Surveyors
There’s a lot of development going on to attract new occupiers to the town and its immediate locality. It just needs a big global brand to take significant office space in the town centre to really set the ball rolling, he believes.
Other major corporates would take notice, check the town out, and find that central Reading now ticks the boxes for their needs, adds commercial property specialist Seager.
You can see Seager’s point, writes John Burbedge.
Reading has come a long way in a few short years, and though still literally a work in progress, the town now has a highly commendable commercial property offering for potential occupiers.
With The Blade now almost fully let and boldly cleaving the sky over Reading, and major new developments coming out of the ground at nearby Forbury Place* and Blagrave Street, Grade-A office supply has improved encouragingly, although not yet satisfying demand.
That demand for quality is being driven by the ‘new wave of occupiers’ that Seager mentions – image-conscious companies operating flexible workstyles, requiring modern office accommodation located near excellent transportation links. They are looking for ‘London’ quality office space, with excellent connectivity and a vibrant place to live and work, explains Seager.
High commercial rents and lack of suitable supply in London have led many companies to look further afield, to consider relocating their offices or setting up HQs outside the M25 area. “And, Reading is looking far more attractive to those companies nowadays,” says Seager
With its magnificent new railway station fully operational, CrossRail, Western Rail Access to Heathrow (WRaTH) and a new station at Green Park now foreseeable, Reading is definitely on the right lines business-wise.
In Blagrave Street, the new six- storey R+ office development is under construction and at Station Hill new mixed-use tower blocks set amid an attractive pedestrianised area will hopefully soon be impressive first sights of Reading town centre for rail travellers.
Seager noted, broadening Reading’s appeal. Residential development, for the workforces to support commercial enterprise, is also planned to the south of Reading.
Additionally, Reading and the Thames Valley has a very attractive work-life offering set amid an enviable natural environment, both good reasons to relocate – yet close enough to get to London, and away from it, added Seager.
But, Reading needed to continue to provide the right forms of
And while Green Park – “possibly the best business park in the UK” – is successfully attracting corporate occupiers, light industrial parks are needed to support the growing warehousing and logistics sector requirements.
With this market currently seeing unprecedented low stock levels and good demand, the situation is set to change. Several sites are earmarked for development in south Reading in the next 6-18 months, including Island Road, Reading Gateway and Imperial Way.
“Reading is the commercial capital of the Thames Valley. If Reading gets it right by attracting influential occupiers, then everyone in the surrounding areas and local towns will benefit too,” says Seager.
* Since the interview, M&G Real Estate has now confirmed the letting of the entire 186,000 sq ft new-build of Number 1 Forbury Place to Scottish & Southern Energy – the town’s largest office letting in 25 years, the biggest in the Thames Valley for over a decade.
Under construction – CGI of the new six-storey R+ office development in Blagrave Street
These ‘gateway’ buildings to Reading are set to be mirrored by ‘gateway’ developments off the M4 south of Reading, an area already being transformed by new mixed- use development, said Seager.
Major improvements have been made to Reading’s M4 junctions, the town has an award-winning bus operator, and a stylish £4 million cycle and footbridge now spans the Thames at Caversham (though sadly, not a much-needed third road bridge for the town). “The box we don’t tick, perhaps, is consistent traffic flow.”
The new Science Park underway at Shinfield will also draw in a fresh range of commercial occupiers,
THE BUSINESS MAGAZINE – THAMES VALLEY – OCTOBER 2015
commercial accommodation. The award-winning One Valpy Street had brought London ‘Shoreditch- style’ workplace design to Reading for example, and greater flexibility around office floorplate sizes was required.
Noticeably, the former Yell offices near the Hexagon have recently been purchased by Crown Student Living ready to be converted into studio and ‘two-dio’ flats for up to 400 students. Adaptation and mixed use of existing Reading properties, particularly empty older offices, needs to be supported, added Seager, not least to resolve the lack of incubator space for urban startups, and SMEs servicing local corporates.
“That’s very good news, but it’s not the ‘Google-type’ occupier that would put the town on everyone’s radar. It’s great that SSE, by expanding and relocating its Thames Valley offices to Reading, has confirmed it wants to stay in the heart of the region. It certainly gives the Reading market something to sing about for now.”
Details: Neil Seager 0118-9211516
neilseager@haslams.co.uk www.haslams.co.uk
www.businessmag.co.uk
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