Reading has the largest office market in the Greater London and South East region, coupled with the longest list of occupiers. With its strategic location, exceptional transport links, and robust real estate growth, Reading offers an enticing landscape for businesses across diverse sectors. But what is it about the town that is proving so attractive to a diverse base of occupiers?
Connectivity and Convenience
As we return to normality following the pandemic and remote work regulations, Reading's strategic location offers a favourable work-life balance. The introduction of the Elizabeth line has further improved accessibility to central London, the City and Canary Wharf. Moreover, the recent opening of Green Park station to the south of town has enhanced connectivity and will ease congestion, supporting further commercial and residential development in the area. Reading also benefits from excellent links to Oxford, a mere 26 miles away with its expanding research and science sector.
Diversification of Occupiers
Reading’s office market welcomes occupiers from a wide variety of industries. The technology sector, being a significant player in Reading's business landscape, acquired the highest quantum of office space in 2022, representing over half of the town’s office take-up. Examples of the town's appeal to tech firms include Amazon's new office at 400 Brook Drive, Green Park, and Rapid7's expansion into a larger space at 2 Forbury Place.
Station Hill: A Catalyst for Growth
Station Hill, a prominent mixed-use development situated adjacent to Reading train station, symbolises the town's commitment to attracting a broad range of businesses. This ambitious project, spearheaded by Lincoln Property Company and MGT Investment Management, will offer 276,000 sq ft of prime Grade A office space upon completion in early 2024. The demand for Grade A office space in Reading is evident, exemplified by the success of Thames Tower, which attracted seven inward movers to the town when it was built in 2017. Station Hill's anticipated rent in excess of £40 per sq ft is expected to set a new record in the Reading office market, in line with the region's rising rental trends.
Cultivating a Creative Environment
As the UK's film and high-end television production expenditure reached record levels in 2022, according to the British Film Institute, Reading has seen the emergence of new film studios. These studios not only contribute to the local economy, but also provide opportunities for collaboration and growth within the creative industry by facilitating a supportive ecosystem. For instance, Shenfield Studios at the Thames Valley Science Park offers approximately 1,000,000 sq ft of studio space alongside dedicated offices that include post-production facilities. Similarly, Stage Fifty's new film studio at Winnersh Triangle Business Park provides a platform for creative professionals to thrive with 120,000 sq ft of studio space.
Talent Retention and Graduate Employment
One of Reading's strengths lies in its ability to attract and retain talent. The University of Reading, renowned for its expertise in sciences, boasts an undergraduate population of 12,500 students. While Reading retains around 8 percent of its graduates, the town draws in a significant portion of its workforce from those who originally hail from there, but moved away for their studies. Additionally, 50 percent of graduates working in Reading have chosen job opportunities there after studying elsewhere. The presence of a strong pool of graduates is crucial for the town’s continued success in attracting high-quality commercial occupiers, particularly in the burgeoning tech sector.
Although the Reading office market is well established, it continues to evolve. The redevelopment as well as the emergence and growth of other sectors will create environments that can cater to a wealth of occupiers.
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