Pressure on rents as UPS takes 127,500 sq ft unit in Reading

UPS has taken a 10-year lease on a 127,500 sq ft building in Island Road, Reading.

All three of the large speculatively-built units, off the A33, which are managed by LaSalle Investment Management, are now let. UPS will be alongside Argos and Universal Electric Cooperation.

UPS will deal with parcel deliveries from the unit, which is close to both J11 of the M4 and Reading town centre, as part of its shipping and supply chain management business. The site has 102 parking spaces, a yard, 10 ‘dock level’ loading doors with two surface doors, as well as open plan fitted offices over two floors.

Edd Fitch, director asset management for LaSalle Investment Management, said: “The decision by UPS to take space at Island Road is testament to both the scheme’s high specification and location.

“We worked collaboratively with our agents JLL, LSH and DTRE to secure UPS on a 10-year term, bringing the prime South East estate to full occupancy.”

Neil Seager, partner and head of commercial agency at Haslams Chartered Surveyors, told Thames Tap: “It is great to see this unit let – it takes a large bite out of the, already limited, supply pool of industrial units in greater Reading and the Thames Valley.

“The letting is rumoured to support an internet retail contract which will continue, either indirectly or directly, to generate the majority of the demand in the market.

“New units are required now but, unfortunately, most planned new schemes will not be ready until mid-2022. As a result, the next 12 months are going to be extra tough for occupiers as the choice in the market will be extremely limited.

“Coupled with the strength of demand, we can only see rents and values increasing in the short to medium term.”

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