Reading office market looking up after strong Q4 2023, says Hicks Baker

Following a quiet first three quarters last year, Reading’s office market rallied in Q4 with a pair of big deals – momentum it looks set to carry forward into 2024 per a new report from Thames Valley property firm Hicks Baker.

Takeup had only reached around 80,000 sq ft by the close of Q3, but much anticipated acquisitions by Wood Group and Lonza brought the year-end total for the greater Reading market – including the town centre and out-of-town areas – to a reported 475,000 sq ft.

Though arguably distorted by these few major deals, this figure compares favourably to the town’s five-year average takeup of 425,000 sq ft, including a 2022 takeup of just 330,000 sq ft.

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Overall, the market saw 32 transactions in 2023, with ongoing demand for smaller fitted space.

And with the Here and Now and Campus buildings now complete, all eyes are on Reading’s flagship Station Hill scheme, which despite delays is still due for delivery later this year.

The mixed-use development will provide 260,000 sq ft office space, compounding a positive outlook for the year ahead – already spurred by some early interest in the town centre this year from potential larger occupiers like PwC.

Hicks Baker is also hopeful that falling inflation, lower interest rates and a little more stability – dependent on a clear and positive outcome from the General Election – will give the market cause for optimism in 2024.

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