Bracknell: Town reports a good year, in spite of Brexit
Bracknell’s office market is having another good year, according to Simon Fryer of Bracknell's Fryer Commercial, and this is "despite Brexit – so far".
As an overview, Fryer commented that in 2010 vacant office supply stood at 2m sq ft – 33% of total stock at the time, reflecting one of the worst statistics describing the Thames Valley's office market. This month (August 2016) it stands at 850,000 sq ft – around 14% of total stock.
"So far this year, 160,000 sq ft of office space has been let or placed under offer in the town – slightly ahead of the pro-rata five-year average 'take up’ figure,” said Fryer. "Clearly, this progress may be influenced by Brexit; we have to wait until the full effect is felt."
However, as Bracknell's office rents are significantly lower than those of its northern and eastern neighbours, Fryer expects little change in take up. The highest asking rents are in the early £20s per sq ft pa, compared to £35 and even moving towards £40 in Reading and Maidenhead.
"The town is attracting companies across many business sectors: leasing, medical, pharmaceutical, health, financial and recruitment, as well as the ubiquitous IT sector,” said Fryer.
“The favourable rents are one factor. Another is the recent road improvements which have removed all the town's relatively-minor traffic congestion – this is now virtually non-existent.
“Also, the Lexicon town centre regeneration is within a year of completion, which will help to recover retail ground that has been lost to larger neighbours over recent years.
"There is continual refurbishment 'churn' of older office stock, resulting in some top-quality products, and in the main, these are letting well. Several office buildings have been converted to residential and there is a steady new house and flat-building programme under way.
"All in all the signs are promising for 2016 as a whole."
