In 2024, the market experienced a stop-start pattern due to the significant impact of political events throughout the year. Consequently, market activity was compressed into a shorter timeframe, with most transactions occurring in the latter half of Q3 and Q4.
The imminent completion of Station Hill in Reading, along with notable lettings to Pepsi Co, PwC, and Newflex, has provided a rare positive highlight in an otherwise challenging office market. The sector, which remains over supplied, continues to face issues related to flexible working, employer National Insurance increases and changes to employment rules. These challenges are expected to persist, alongside a shift towards super prime locations and a reduction in occupier space requirements. This trend will likely stimulate parts of the letting market as tenants streamline their portfolios.
In the industrial sector, the Thames Valley has yet to see the rental growth experienced by other regions, as new developments have been slow to emerge. This is expected to change in 2025, with several projects set to begin and complete. However, occupiers will still face limited options due to the ongoing supply shortage.
Added by
Neil Seager
BSc (Hons) MRICS