property


Elizabeth Line stimulus to Thames Valley office locations


When a business seeks to determine where they should be based there are two key aspects they must understand, firstly their ability to access a quality labour pool and secondly the availability of suitable property


Here we look at the pending impact of the new Elizabeth Line which begins service in 2019/20.


Working population impact


Businesses look at the workforce potential within a one hour travel distance from their premises. The demographic of the workforce is another important consideration as most businesses are keen to access the millennial generation.


The Elizabeth Line is going to have a profound and positive impact upon Thames Valley locations, especially Reading, Maidenhead and Slough.


Travel times impact


It has passed many people by that the impact upon Reading and its connectivity to London, derives from the “combo” of regular fast trains to London Paddington (27 minutes), then changing to the Elizabeth Line at Paddington to travel across central London. By comparison, taking the Elizabeth Line from Reading to Paddington will take 50 minutes.


Reading – Fast train


Fast train to Paddington + Elizabeth Line to City (Farringdon Street) 38 mins 46 mins


to Canary Wharf to London Paddington 27 mins


toWest End (Bond Street) 33 mins to City (Liverpool Street) 40 mins


Maidenhead – Elizabeth Line


toWest End (Bond Street) 38 mins to City (Liverpool Street) 45 mins


to London Paddington to Canary Wharf


35 mins


to City (Farringdon Street) 43 mins 51 mins


Slough – Elizabeth Line


toWest End (Bond Street) 30 mins to City (Liverpool Street) 37 mins


We expect corporate occupiers to take advantage of these benefits once the line is operational and therefore demand for offices in these locations can be expected to increase.


Office demand impact


We have seen examples of regional consolidation happening in so far as office occupier’s relocations are concerned. Examples are SSE, Thales, Bayer and most recently Ericsson, all relocating, or consolidating to Reading.


We have not seen Maidenhead and Slough benefiting to quite the same degree. This may change when the positive impacts become better understood.


Of these three Thames Valley locations, Maidenhead looks the most challenging in terms of the supply of Grade A offices. So challenged in fact that there is almost no Grade A town-centre supply at the start of Q2 2018, and only one building under development, The Lantern (19,000 sq ft).


London calling or Relocation?


Many lament at the lack of business relocation activity from London to the Thames Valley towns but reality check here, the new Elizabeth Line isn’t operable until 2019/20. Businesses are unlikely to undertake or seriously consider such relocations until the service is running and the benefits proven.


Reasons to be cheerful for the Thames Valley are the substantial property savings that will be offered by relocation – circa 40% upon both commercial and residential. This ought to grab the attention of London-based businesses and their staff.


It is impossible to compete with London on this front, hence “better to join the club” than set ourselves apart? Never the less our town centres need rejuvenating in this spirit; so far Reading is streets ahead of other Thames valley locations. To be successful our Thames Valley towns need to be relevant not suburban enclaves.


For a more detailed insight email Genevieve Deering for a copy of the 2018 Thames Valley Office Report:


gdeering@lsh.co.uk lsh.co.uk


THE BUSINESS MAGAZINE – JULY/AUGUST 2018 businessmag.co.uk 45


to London Paddington to Canary Wharf


27 mins


to City (Farringdon Street) 35 mins 43 mins


source: Crossrail and Network Rail


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