Office Property Market Recovering

The first signs of occupational recovery have been shown in 2010, according to a national commercial property consultancy report.

Lambert Smith Hampton’s (LSH) National Office Report 2010 found that while demand for office property has reduced significantly over the past two years, there are now signs the market may be recovering.

LSH predict that although rental values will fall by around three percent in 2010, this will be the last year of declines for the market as a whole. It expects only weak growth next year, followed by a stronger recovery in 2012 and 2013.

It expects rental growth to return to 2006 and 2007 levels by 2014, with the Central London market leading the rest of the UK out of the current downturn.

This sense of optimism should prove encouraging for the occupational market in Berkshire, which has struggled over the past 15 months.

Indeed, take-up in Reading reached its lowest total in more than ten years last year, with total occupational market activity only equalling 185,764 sq ft.

Furthermore, the first quarter of 2010 has got off to a similarly slow start, with only 22,260 sq ft let, through two transactions at Plaza West in Reading town centre.