Get ready for an upturn in demand for Thames Valley offices – Lambert Smith Hampton
Take-up of office space last year in the Thames Valley region was flat year-on-year, says Lambert Smith Hampton. The firm’s data shows that take-up for 2011 was 1.7m sq ft, the same as for 2010, against a backdrop of economic downturn.
In the final quarter, 387,753 sq ft was transacted, the firm says, with key deals at Bedfont Lakes in Heathrow, Maidenhead Office Park, IQ Winnersh, Globe Park in Marlow and Dukes Court, Woking.
Lambert Smith Hampton says the market is being driven by lease events on office buildings, which are prompting occupiers to seek available office space to let if they want to upgrade to more modern properties. Only 28% of the 12m sq ft of available office space in the Thames Valley region is Grade A, LSH notes, and near-term speculative development is limited.
With a “serious shortage” of Grade A supply forecast for between 2013 and 2014, LSH is urging landlords to refurbish their secondary office properties in order to secure strong covenants over the next year and to prepare for an upturn in demand in 2014. The firm also hopes that investors will “make braver steps to fill the void of the quality, Grade A product that modern office occupiers are looking for”.
