Office take up along the M3/M4 Western Corridor rose sharply during the third quarter of 1997 to 116,600 sq m (1.25 sq ft), says a report by Hillier Parker.
Two thirds of the space was acquired by high tech companies and, excluding Foster Wheeler’s acquisition of Shire Hall in Reading, 86% was Grade A specification. The average Grade A rent achieved during the first nine months of 1997 was 15% higher than the average for 1996.
The highest rent in the corridor so far this year is £301.40 per sq m (£28 per sq ft) on the pre-letting to Aspect Communications of 2,760 sq m (29,700 sq ft) at Stockley Park.
Among the key transactions were: Computer Associates’ acquisition of the former Calor Gas site in Langley; Nortel’s pre-leasing of phase IV of Maidenhead Business Park; Sun Microsystem’s acquisition of a site at Guillemont Park; and German softwear company SAP’s acqusition of a freehold at Bedfont Lakes.
Adequate parking for mobile sales teams was a key influence in the search for new premises, but planning authorities were increasingly unwilling to grant permission for car parking adjoining out-of-town office developments.
This was likely to increase demand for exisiting buildings and sites with adequate parking ratios, and further increase the differential between town centres and business parks, the report predicts.
Availability fell by 4% during the quarter, but the level of speculative development had not increased. However, 31,700 sq m (340,000 sq ft) was expected to start before the end of 1997.
Incentives and length of lease in the corridor continue to move in favour of the landlord, the report says.The average length of lease for Grade A spaces in 1996 was just under 10 years: this had increased to 12 years during 1997.
EGi News 01/12/97
