The Thames Valley occupational market remained buoyant in the second quarter of 2008 – but it is unlikely that it will continue to hold up, according to new figures from King Sturge.
Take up for the second quarter was in line with the five year quarterly average of 432,000 sq ft, and take up over the first six months altogether was 920,000 sq ft.
However, the report said: ‘The uncertainty in the financial markets and negative sentiment of the economy is beginning to impact on demand levels and at end Q2, only 340,000 sq ft of space was under offer compared to 550,000 sq ft during the same period last year…Therefore the market may face a fairly bleak third quarter with regards to demand levels.’
A number of requirements are out in the market, the report said, including Proctor & Gamble, Volvo, Lego and Johnson & Johnson, but these are long-term and will not impact on short term figures.
It also said that, whilst there was an increase in schemes under construction from 1.7m sq ft the previous quarter to 1.9m sq ft, this was likely to dip and there would certainly be a slowdown.
Some core markets continued to see growth in headline rents, including Hammersmith, which reached £42.50/sq ft and Maidenhead, which reached £32.50/sq ft.