How does Reading continue to compete as an office location?

20th July 2023

Nigel Horton-Baker, Executive Director of REDA, outlines the challenges facing Reading’s status as a leading office location and REDA’s plans to take the Reading story to the world.

Like so many business locations, Reading faces a threat to its pre-eminence as a leading international business capital for knowledge-based companies post pandemic. Global business pressures and new working practices has put pressure on office locations and, word is, we are not getting as much of the business relocation action these days. Office vacancy rates in Reading town centre are expected to rise next year to 19%, the highest since 2017. Gone are the days when we could just rely on businesses turning left from Heathrow and setting up a base in Reading. The challenges to capture new business are now more complicated, but the good news is that Reading’s economy overall has bounced back in Reading as it has done historically, and Reading is gearing up to take its compelling proposition to market.  

Companies are looking more closely at their property portfolios, given how COVID has totally changed our working patterns. Britain is locked into a new norm of home working with Britons working more hours from home than any other nationality in Europe, according to an international survey of over 40,000 employees globally (The Times). 

Herein lies the dilemma for the property sector - what do existing and new tenants want? Flexibility perhaps, but how much and when? Tenants can’t work it out. Landlords don’t want to second guess on a spec that could be ripped out. The new requirement out there is amenity space, space that passes the HR Directors scrutiny. And yes, I did say HR Director, unheard of in the business location decision-making process historically.  Our enquiries tell us that they, more so than the rest of the ‘C’ Suite and property team, are in the driving seat of relocation decisions, ensuring property options pass their ESG test and provide for the health and wellbeing of their staff, hoping that the space will get them back maybe three days a week instead two.

When you have experienced a successful economy like Reading, complacency is not an option. Campaigning to attract new companies is a must-do in the face of global and local competition - anyone noticed the emergence of the Western Gateway economic partnership and the recent relaunch of the Oxford to Cambridge Arc to create an international powerhouse?

From our research we truly believe we have a high-value proposition to sell the Greater Reading location.  We are already an international economic powerhouse and we believe we can create a sustained increase in the take-up of offices in Reading Central and of high- quality business space more widely in Greater Reading over the next 10 years, combined with the creation of internationally significant clusters of film and TV production activities, high-value business services and advanced digital and low carbon technologies, creating high quality job opportunities and prosperity for local people. 

We have over two million sq ft of high-quality space, 50% of which is BREEAM rated and a further million under construction or planned.  We will be working with the property sector to get this filled in the next 3-5 years. 

We want to build on our digital, finance and bio pharma sector strengths and diversify into creating internationally significant clusters of film and TV production activities on the back of the new Shinfield Studios at the University Science Park, as well as high-value, low-carbon technologies and climate science companies building on the development of the world’s biggest cluster of climate scientists at Reading University. 

We have always had great locational advantages.  ‘Location, location, location’ is our USP and now we are part of the London Transport network as the western terminus of the Elizabeth Line.  

REDA is developing a new high-profile inward investment campaign using the new Reading place brand aimed at positioning Reading as front of mind amongst the decision makers considering relocation of their activities and attracting a stream of high value, high prestige businesses in leading growth activities.

It’s a marketing campaign we hope will take Reading back to MIPIM, the premier international property exhibition in Cannes next year, where the first deal to purchase the Station Hill site was signed and sealed by Reading’s own Sir John Madejski on a boat rented by REDA in 2007.  The rest is history, but it is so great to see Station Hill, phoenix like, shooting out of the ground with 620,000 sq ft of new high quality office space.  Thank you Lincoln and MGT for your intervention and turning this premier Reading gateway site from an eyesore into something spectacular. 

REDA is still formulating the Reading strategy and marketing plan, so if you would like to play a part in shaping it and think you can help, please do get in touch.