A supply crunch is looming in the Thames Valley office market
Suzanne Lovell
In the Thames Valley Market discussion at the Thames Valley Property Forum, delegates heard bosses of two of the region’s major business parks agree that a supply shortage would be caused by several factors coming together.
Rupert Batho, asset manager for Patrizia, based at Winnersh Triangle, said: “We are heading towards a a little bit of a supply crunch in terms of the top end product in probably two to three years time.
“The drift towards best of class space, combined with a lack of new product coming on, combined with PD taking the bottom end stuff out, is going to result in some interesting challenges.
“Technology may be helping some of that because what we are also seeing is occupiers who employed 400 people, don’t necessarily need 40/50,000 sq ft. They probably require 20,000 sq ft through different work practices.”
He was backed up by Rory Carson (pictured left), vice president of Mapletree Investments, owners of Green Park.
Mr Carson admitted he had been unable to offer new Winnersh Triangle occupier Becton Dickinson any space. He added: “At Green Park we are about 93 per cent let, we’ve got about 100,000 sq ft available but that’s spread between six multi let buildings, and for us to continue driving on the rents, increasing the occupancy and providing the existing occupiers here with genuine opportunities to facilitate their ongoing growth, we need to make sure we are starting to develop.
“Mapletree completed the purchase of Green Park in May 2016 and had the intention to start building almost straight away - and then there was the UE referendum vote.
“So that has been a brake on that development pipeline and there is pretty much no development in the pipeline beyond those which are completing in the next six to nine months.
“So I agree with Rupert; there’s about to be a bit of a supply crunch, and we, as an industry, need to be brave, and make sure that doesn’t become a problem for the Thames Valley on a wider basis.”
The session was based upon and infographic by Vail Williams which highlighted a multitude of industry issues.
Partner Kevin Cook asked how the Thames Valley should attract and retain the best talent.
Read the full article here.
Source: Thames Valley Property No 84 (tvproperty.co.uk)
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