The broker attributes the slowdown to the continuing problems in the telecoms and IT sectors, which dominate the Thames Valley market. Nevertheless, IT and telecoms companies still accounted for 30% of all activity in the area during the first half of the year.
Availability rose to 11.7 million sf, the highest level of availability seen for 12 years but the flow of space onto the market is easing compared with last year. Ready to occupy offices now equal 10% of all Thames Valley stock.
Against such a depressed backdrop it is inevitable that rents will fall, and IRE says that rents have declined further after falls of 3 to 4% during 2001. IRE puts prime Maidenhead rents at £32 ($50) per sf with Slough at £30 ($47); Bracknell at £28 ($43); Reading at £27 ($42) and Basingstoke at £20 ($31) per sf.
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