Flexibility is one of the strengths of the commercial property market in the Thames Valley.
That shows in the early reactions to Crossrail even though it is delayed. Already transport considerations and the specifics of location are playing their part, notably in the growth of town centre activity in Reading.
There is no question that town and city centres have become more attractive to occupiers and this has extended to residential accommodation where empty offices are being converted or, as in the case of major regional centres, getting new flats.
Oddly enough the return to the centre has not helped retailing which appears to be in a long-term decline.
In the case of the Thames Valley, where activity has held up well for offices, transport improvements are bringing long- term changes, particularly for industrial. This means a cohesive, techcentred economy but also strong town centres.
The flexibility in the region also shows in the logistics and storage sector where local authorities have learned that lots of new space does not translate into lots of new jobs. Now, said agent Bruton Knowles, “regional inward investment teams are targeting high tech manufacturing businesses from start-ups to relocators” - very suitable for the Thames Valley.
Bruton Knowles poses the question of where the new large distribution hubs will be located. They believe that one solution to distribution is more intensive use of sites with multi-layered sheds, such as Segro’s X2 building at Heathrow, with easy access to the M25. BK expects more developers to go for that type of solution.
Here again it is all about flexibility and the need to react faster to market conditions, an essential lesson for retailing in the future.