The long-running lack of supply in the Thames Valley’s industrial market is showing signs of easing.

Haslams Chartered Surveyors has published its Greater Reading Industrial Market Report for 2024 and notes that new schemes are finally coming forwards after years of the market being characterised by little movement in supply of new stock.

Already under way and due for completion this year is 185,000 sq ft Hurricane Urban Hub in Woodley and construction is imminent on 155,300 sq ft Reading Logistics Park, near J11 of the M4, while the potential pipeline of space includes around 225,000 sq ft at the former Shire Hall.

Managing partner Neil Seager (pictured right with Haslams partner Alec White) told Thames Tap: “There’s a few new schemes this year. I must have sounded like a broken record in recent years but this year is one where things will start to get built.”

In total, available space increased from 534,000 sq ft to 822,000 sq ft from 2023 to 2024 and supply is currently 29 per cent above the five-year average.

One driver of demand is data centre displacement where data centres are built on existing industrial schemes and those occupiers go in search of alternative sites, a trend Haslams expects to see continue.

The concept brought about last year’s biggest deal in the region when Synergix Logistics took 46,000 sq ft at Suttons Business Park in a move from Iver where it was displaced by a data centre.

Mr Seager said more attractive rents in this region could drive more displacement. In West London, space is around £25 – £30 per sq ft, while Slough rents are in the high £20s per sq ft with prime space in Reading potentially increasing to above £20 per sq ft due to better quality stock coming forward.

The report notes that while landlords are uninstalling gas supplies to meet MEES and ESG requirements, some occupiers are re-installing it as the most practical way to heat their buildings.

The General Election had removed a level of uncertainty from the market in 2024 but the Autumn Budget has caused hesitation.

Mr Seager said some Government decisions have made life difficult for businesses although it helped to know the political direction the Government is going in.

He added: “We know what the pieces on the board are but unfortunately there are a lot of negative pieces on the board.”

Overall the market remains robust with supply still limited with occupiers having to consider taking lettings of new space off-plan. The report states the sector remains a safe haven for investors.

© Thames Tap (powered by ukpropertyforums.com).

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