Thames Valley: JLL reports solid market for office lettings

The Western Corridor office market is performing solidly post the Brexit referendum vote, with lettings across the region set to hit 400,000 sq ft in the first quarter of 2017, in line with recent market performance and following a rise in occupier demand in the second half of 2016, reports JLL.

Deals transacted in 2017 to date include: INC Research taking 48,988 sq ft at Pinehurst 1&2, the biggest office letting in the M3 Corridor in five years; Medidata taking 29,560 sq ft at 12 Hammersmith Grove; and Salmon taking the entire 30,000 sq ft at Clarendon Works, Watford, a record rent and the town’s first prelet in a decade.

James Finnis, head of South East Office Agency at JLL, said: “It’s been a solid start to the year for the Western Corridor and wider South East region. The trend for occupiers to take less but better space to drive efficiencies, which JLL forecast last year, is gathering pace and the focus for leasing activity is on prime space. The development pipeline is delivering accommodation in key locations and we will see leasing traction on this new and repositioned stock.

“Development levels are severely curtailed post 2018 just as infrastructure improvements including the Elizabeth Line come on line increasing the South East’s attractiveness. The potential threat of limited downstream supply is focusing occupiers minds particularly those with lease events in 2019 and 2020 and they are accelerating their occupational strategy.”

Source: CoStar