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Office rental slump could hit Reading

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Despite a solid first half of the year, a property expert in Reading is predicting a slowdown in the office rental market.

Commercial property consultancy Hicks Baker believes worries over economic uncertainty and fragile business confidence in the Berkshire town is stifling the making of deals and this is likely to mean the market falls behind levels set in 2010.

IT giants Atos have recently moved into a new state-of-the-art office block in the area but Stephen Head, leader of the business space team at Hicks Baker, believes more deals need to be brokered to keep pace with last year's results.

He said: “The market is relying on at least one of these 'trophy deals' to come to fruition in the next few months, otherwise we will fall short of the 2010 figures.”
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But it isn't all doom and gloom for commercial developers in the region as office rents in Reading town centre are still performing well and financial services provider ING Direct are planning on opening a 90,000 sq ft call centre in the area.

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