Market snapshot

Office Market Pulse: Thames Valley Q3 2012

Office take-up in the Thames Valley has seen a marked increase in Q3, after a disappointing first six months. While the volume of deals has reduced, the average size of transaction has increased, and we expect these activity levels to continue through Q4. As a consequence, we expect to see the annual take-up total match that of 2010 and 2011, at around 1.7m sq ft.

In this issue:

Annual take-up levels set to match 2010 and 2011

In Q3, Thames Valley office take-up totalled 609,417 sq ft. While this is an increase on the same quarter last year (510,697 sq ft), total take-up in 2012 now stands at 1.21m sq ft, against 1.24m sq ft for the same period of 2011. We anticipate that Q4 take-up is likely to be sufficient to match 2012 annual take-up levels with those seen in 2010 and 2011, when 1.7m sq ft was recorded.

For a breakdown of office enquiries over 5,000 sq ft click here.

Significant occupational transactions Q3 2012

Property Size (sq ft) Landlord (s) Tenant / Purchaser Lease
300 South Oak Way, Reading 139,239 sq ft Schroders IMG Worldwide 15 year lease,
£26.50 per sq ft
5 Longwalk, Heathrow 114,000 sq ft Oxford Properties Huawei 10 year lease,
£23 per sq ft
2 Maidenhead
Office Park
114,000 sq ft AXA Toys R Us Confidential terms
Cap Gemini, Woking
18,355 sq ft PRUPIM SAB Miller 7 year lease,
£21.50 per sq ft
Inspired, Bracknell
18,000 sq ft Schroders Anixter 10 year lease,
£15 per sq ft
Inspired, Bracknell
17,000 sq ft Schroders Experto Credite 10 year lease,
£15 per sq ft
The Atrium, Uxbridge
16,500 sq ft Aviva Herbalife 10 year lease,
£25.50 per sq ft

Quality office supply remains low

Total office supply in the Thames Valley currently stands at 11.7m sq ft, of which 75% falls below grade A.

For a detailed breakdown of supply by centre click here, or for a breakdown of availability by grade click here.

Improved investment activity continues

Office investments sold in the Thames Valley in Q3 equated to £190.33m, bringing total investment in the region to £465.08m for the year to date.

A further £101.6m is currently under offer and £229m is being marketed. Despite a slow start to the year, total Thames Valley office investment in 2012 is expected to match last year’s transaction level of £700m (not including the Green Park deal).

Key investment deals from Q3 2012

 Property Size  Purchaser(s)  Price  Yield
Market House, Maidenhead 74,000 sq ft  Gatehouse Bank and Sidra Capital £33m 6.25% 
Dukes Court, Woking 225,000 sq ft IMW Immobilien SW £52m  6.55% 
Marlow International 231,000 sq ft  London & Stamford  £50.15m  8.88% 
250 Brook Drive, Green Park 65,500 sq ft  Oxford Properties £19.5m  8.75% 

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Nicholas Coote

0118 960 6912

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Nicholas Coote
Head of Thames Valley

0118 960 6912

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