by Duncan Lamb
Despite some uncertainty over the effect of the modifications being made to the draft Berkshire structure plan by the Environment Secretary, the commercial property market in the Thames Valley has enjoyed a buoyant 1987 and looks set for continued growth in investment and demand.
For the second year running, statistics compiled by local agents Campbell Gordon show that demand in the region topped 20m sq ft over the year. In 1987, the firm recorded 869 companies looking for space totalling 20.07m sq ft. This compares with the 706 companies who were in the market for a similar amount of space in 1986.
The agents’ survey indicates that the property market is meeting this demand — by the end of 1987, half the total demand which had been identified in 1986 had found new accommodation.
With regard to the type of space required, the survey shows that nearly two-thirds of the companies looking for space wanted less than 15,000 sq ft.
Interestingly, demand for office and industrial space (hi-tech and B1) increased by about 20% over the year and is now approaching levels not experienced since 1984.
The spin-off from the continued influx of companies into the locale is people; and Environment Secretary Nicholas Ridley is seeking to contain an uncontrolled growth in housing development.
Although this might lead to higher house prices and provide a disincentive to companies looking to locate in the area, Campbell-Gordon’s senior partner, Ian Campbell, forecasts continued growth in the property market with rents rising and further investment taking place.
Adding weight to this opinion is the increasing number of companies who are paying the keenest prices to capture sites or developments for owner-occupation.
