Offices: What the market says
Reading town centre
“Short-term plateau/softening of prime rents but then some pick up to £32.50 per sq ft – major rail improvements at and impending possible City status award all add to town centre merits.”
Nick Coote, head of Reading office, Lambert Smith Hampton
Oxford
“Contract-led requirements are driving demand for offices on business parks with two deals of £20k and £35k imminent, while in city centre D1 Educational uses continue to dominate.”
Charles Rowton Lee, head of Oxford office, Lambert Smith Hampton
Maidenhead
“With take-up ahead of long-term average and speculative development back in the town centre, Maidenhead is once again leading the recovery across the Thames Valley.”
Cliff Jackson, director, Lambert Smith Hampton
Industrial
Comment: Paul Swinney, Centre for Cities
Recent poor growth figures and the rise in unemployment have underlined the fragile nature of the UK economic recovery. Fortunately, Milton Keynes, Reading and Oxford have weathered the storm well.
Reading has seen the seventh lowest increase in the number of people claiming Jobseeker’s Allowance since 2008 out of all UK cities. And Oxford has seen the second-lowest increase. The claimant count rate in both cities stands at 2.4% compared with 4% nationally.
They are among the least exposed cities to increases in public sector job losses. Milton Keynes and Reading have very small public sectors, and even though Oxford has a relatively high share of public sector jobs, the main university is unlikely to feel the squeeze due to its international appeal.
Also, Milton Keynes and Reading have high levels of business start-ups and patent applications, which points to a strong private sector economy. This activity is underpinned by a strong skills base – 33% of residents hold a degree or higher in Milton Keynes, 40% in Reading.
While their size means that they play a smaller overall role in the national economy than England’s core cities, their performance compares very favourably with their larger counterparts.
Problems in Europe and public sector spending cuts pose a threat to employment in all cities. but the characteristics of the economies of Milton Keynes, Reading and Oxford put them in a stronger position to face the challenges.
