By Jonathan Mannings RARE / Original Post: Costar

I am increasingly hearing that companies are asking employees to return to the office and if the traffic on the roads during rush hour is anything to go by, it seems that they are taking heed.

I have to say it comes as little surprise to me that people are increasingly feeling the benefits of returning to work (RTW) - we are after all social creatures and whilst some prefer working in their spare bedrooms, the majority like the human interaction of being in the office.

As a result I am firmly of the view that this year will witness a step change in the level of leasing activity in the Thames Valley.

Characterised by a shortage of quality, well located office space and following over two years of inactivity, I think we are on the cusp of one of the most significant periods of letting activity in a decade.

Assuming the Russian standoff on the borders of Ukraine is nothing more than Mr Putin flexing his muscles to remind the world that he still exists and that the situation doesn’t develop into a full scale war, I believe this year will mark the start of the UK’s emergence from the Post Brexit, post Covid stagnation that we have been living through for over two years.

With the Thames Valley increasingly recognised as “Cine Valley” playing host to a burgeoning number of film production companies and studios, coupled with the rapid growth in the life sciences and bio-tech industry not to mention the continued maturation of the TMT sector that has traditionally been the predominant one in the region, the outlook is more promising than it has been for almost a decade.

Whilst the bulk of demand remains in the sub- 10,000 sqft sector of the market, there are an increasing number of larger requirements emerging as corporates realise that to secure the little remaining space available, they had better get a wriggle on. This is particularly evident with the pre-lets and “lettings-on-completion” that have become more prevalent in recent months including the letting of 119,000 sqft to Three at Green Park; 56,000 sqft pre-let at Foundation Park to Ultra; the letting of 21,000 sqft to Clyde & Co at 3 London Square, Guildford and the letting of 57,000 sqft to IHG at Windsor Dialsand of 45,000sqft to Intersystems at One Victoria Street Windsor continuing the trend first witnessed in the City which saw record pre-letting levels in terms of the percentage of the total quantum of take-up in 2021.

Lonza Pharma, Huawei, The AA, Select Car Leasing, VirginMedia and ADP join a growing number of other, as yet un-named occupiers, currently reviewing options to accommodate requirements of between 30,000 and 500,000 sqft.

The disequilibrium in supply and demand is also ensuring that rents are not being squeezed. Indeed, record rents for the region are being set in Windsor at close to £45 per sqft.

Looking back 12 months there were many agents beginning to get very concerned about the future of the office sector, particularly in the Thames Valley, with many believing that Working from Home was the future. I am pleased to say that it now looks as though reports of the decline of the office market were somewhat premature and 12 months on we may be on the cusp of a new “Golden Age in the Golden Triangle.”