• Total office supply in the Thames Valley market at the end of Q1 2016 stands at 9.188m sq ft, down from 9.39m sq ft at the end of Q4 2015 - a fall of 2.15%
• The proportion of grade A supply remains steady at 48% of the total
• The years’ supply available is 4.39 years’, compared with 4.5 years’ at the end of 2015. Grade A supply has fallen from 3.83 years’ to 3.16 years’
These figures clearly show a tightening market dynamic that will continue to apply upward pressure on rents IF occupational take-up continues at current levels.
Highlighting Reading town centre, there is now 918,559 sq ft of grade A supply, yet there was only 7,008 sq ft of grade A take up in Q1. This may be a blip, but clearly the market expects much more activity and we are watching Q2 very closely.