Slough Town Report Q4 2018

SNAPSHOT PRIME RENT

AVAILABITY

880,000 sq ft

COST PER WORKSTATION

2018 TAKE-UP

278,500 sq ft

Crowned Top Place to Live & Work Source: Glassdoor

£5,400

1st Most productive borough in the UK Source: ONS

There is a workforce of over 2.6 million people within a 1-hour drive of Slough Source: TravelTime

Rated as one of the fastest growing areas in terms of the number of new businesses Source: Centre for Cities

Open for Business

Over 4,600 businesses call Slough home, with the town reported as having the highest concentration of corporate HQ’s outside of central London. Permitted Development Rights and the incoming Elizabeth Line has provided the catalyst for a booming residential market resulted in the removal of over 750,000 sq ft of office stock from the market since 2016. Vacancy in Slough currently sits at around 22%, which is well above the Berkshire average of 13.5%. A sharp increase over the past couple of years has mainly been due to a combination of large occupiers moving out such as Amazon & Blackberry and new supply of The Future Works, 25 Windsor Road & The Porter Building being completed. With a number of major regeneration projects planned and the vastly improved connectivity to London and Heathrow, Slough has seen prime rents grow to £38.00 in the Porter Building.

£38.00

Key Take-Up 2018

MARKETPLACE 25 Windsor Road

- 111,000 sq ft - £40 million Slough Borough Council

The Porter Building

- 110,000 sq ft - Part of £285 million portfolio purchase

Spelthorne Borough Council

- 45,750 sq ft - £13.25 million M&G Real Estate

Charter Court

Currently Available

Investment Deals

£28.50 30,300 sq ft

The Urban Building

£28.50 19,200 sq ft Keypoint

£35.00 83,000 sq ft

The Future Works

£38.00 32,800 sq ft

The Porter Building

Undergoing Refurbishment

3 Year Outlook

270 Bath Road

• ‒ 48,915 sq ft

The Porter Building

‒ 31,700 sq ft @ £36.00 ‒ 22,000 sq ft @ £36.00

The Future Works ‒ 16,437 sq ft

234 Bath Road ‒ 20,912 sq ft @ £33.50

‒ 7,204 sq ft

£

COMING SOON

1 3

Homes bought in Slough were purchased as 2nd homes / investments

House price growth since 2009 11.2% annually 60%

The Heart of Slough

£ The £450 million plan is transforming Slough with £1 billion spent on wider regeneration

The new Slough Ice Rink opened in April this year, following a £7.7 million renovation

Following ADIA’s £130 million purchase of the 600,000 sq ft Queensmere Shopping Centre & the 57,400 sq ft Wellington House in 2016. Current proposals are for the comprehensive refurbishment of the centre for a mix of new retail with over 900 residential units on the floors above

7.0 House price to income ratio One of the UK’s top 3 of locations for highest wage level

£ Average salary in Slough- £29,500 +6.5% higher than the UK average

Housing Boom Stock Replacement

Over 750,000 sq ft of office stock has been lost to PDR

Thames Valley University Site (TVU) - Regeneration project is expected to bring more than 1,400 homes, 45,000 sq ft of retail/leisure space, and 250,000 sq ft of office space. Due to be on-site by Q1 2020

The Future Works - Following the completion of the first 100,000 sqft building, Phases 2 (80,000 sq ft) & 3 (170,000 sq ft) will deliver a total scheme of 350,000 sq ft of offices adjacent to Slough station

Western Rail Link to Heathrow (WRLtH)

• A new direct rail link between Reading, Slough and Heathrow via Maidenhead and Twyford

• Result in a journey time to Heathrow of 6 mins from Slough • 4 trains per hour • Expected to be operational by 2024 • Consultations have been undertaken and due to be submitted for planning in 2019

Slough Mass Rapid System (SMaRT) Phase 1 - The £9 million scheme completed this year delivers a rapid bus service from Slough Trading Estate via the town centre to Langley and includes the widening of the A4. Phase 2 ‒ Plans linking the SMaRT to Heathrow will be launched in the Council’s Transport Vison 2019 with ambitious proposals expected.

CROSSRAIL EFFECT

With Crossrail arriving in Slough in December 2019, connectivity is set to improve further. Crossrail will transform rail transport in London and the South East, increasing capacity by 10%, supporting regeneration and cutting journey times to the City. The route will run over 60 miles from Reading and Heathrow in the west, through new tunnels under Central London to Shenfield and Abbey Wood in the east. An estimated 200 million annual passengers will use Crossrail. Services will be faster and more efficient, allowing commuters from Slough to travel right into the centre of London without having to change trains.

Trains departing every 10 mins from Slough at peak times

Each 200-meter Crossrail train will have a capacity of 1,500 people

The existing mainline rail service has journey times from Slough to London Paddington in 17 minutes

BURNHAM

Crossrail will bring 1.5 million people within a 45-minute commute of London.

Slough to Reading in 14 mins Slough to Heathrow in 17 mins Slough to Bond Street in 31 mins Prime rents in Slough have risen by almost 30% in the 5 years that Crossrail has

been under construction

SLOUGH TRADING ESTATE • The Slough Trading Estate is Europe’s largest industrial estate in single ownership with over 600 buildings and 400 tennants.

• In 2015 SEGRO sold it’s 972,300 sq ft ‘Bath Road Central’ portfolio for £325 million to AEW Europe.

Total Property Stock

7,500,000sqft

10 Miles to Heathrow

The 4 x Le Mans Winning Ford GT40 was developed by the Ford team on the Slough Trading Estate between 1963-1969

Home to:

20,000 motorists use the A4 very day

The SMaRT Bus links the Trading Estate to the town

centre and station in 15 minutes

Racing Heritage

The TV show, Thunderbirds was originally written, produced and filmed at Stirling Road on the Slough Trading Estate between 1964 and 1966. In 2015 a team making new episodes of Thunderbirds moved back into the original building in Slough to mark the 50th anniversary.

88%

245,594 sq ft

Of the total space available on the Bath Road is sublease or relet space

45,630 sq ft

Space available at 234 Bath Road which represents the only new space available on

the Bath Road

119,805 sq ft

New proposed space at 210 Bath Road

97% Occupancy rate on Bath Road offices

• 268 Bath Road - Renewed 69,900 sq ft for 11 years

Notable Activity 2018

• 252 Bath Road ‒ Took a 10 lease of 9,850 sq ft

Plans for a BOXPARK or equivalent are due to be announced in Spring 2019

H O R L I C K S

#1 Horlicks Factory Site The 12.66-acre, £40 million site was purchased by Berkeley Homes in September 2018. A 750+ unit scheme is due to be submitted for planning application in 2019. The main façade and the clock tower are to be retained, preserving the heritage of the 110-year-old building.

2019 PIPELINE PROSPECTS

#2

#3 AkzoNoble Site The sale of the acre site is expected to be completed by the end of 2018. The site offers potential for a mixed-use scheme comprising of 1,000 ‒ 1,400 residential units, retail & commercial space.

#4 Marriott Hotels The approved scheme based on the unused Slough Central library site will deliver 244 rooms with work due to commence on-site in April 2019.

#5 Scottish Widows Site Pre-application plans on the former Octagon site are for 330 flats across two towers with a 180-bed hotel in between it and Brunel Way. The scheme will also include a gym, pubs, restaurants, a cycle store, coffee shop, retail and a business suite on the ground level with conference facilities.

#1

#3

#4

#5

rare:video

A WIDER VIEW

The Thames Valley Region continues to be the No.1 destination for business with the highest £GVA (Gross Value Add) per worker outside of London. This is illustrated by the 5,238 new jobs created in the South East over the last 12 months of which 3,394 were in the core Thames Valley.

Guy Parkes Jonathan Mannings Andrew Baillie Lewis Pearson

0118 945 0119 0118 945 0118 0118 945 0120 0118 945 0121

gparkes@ra-re.co.uk jmannings@ra-re.co.uk abaillie@ra-re.co.uk lpearson@ra-re.co.uk

0118 907 9700 ra-re.co.uk

RARE continue to read the market and predict future trends so as to give our clients a competitive advantage

@RARE Commercial

@propertyRARE

@rareproperty

J11

GATWICKAIRPORT

READING

PADDINGTON

HEATHROWAIRPORT

THAMES

J10

J4

J8

J6

J3

J12

J15

J18

J10

J7

J12

LONDON

BRACKNELL

WINDSOR

WOKINGHAM

GUILDFORD

WOKING

STAINES SUNBURY

UXBRIDGE

CHERTSEY

FLEET

HOOK

CAMBERLEY

BASINGSTOKE

NEWBURY

THEALE

FARNBOROUGHAIRPORT

SLOUGH

HIGH WYCOMBE

MARLOW

M25

M25

M23

M25M40

A322A331A339

A31

A404

A205

A4074

A3

A3

A3

M1 M11

M4

M3

M4A4

A4

A33A23

A40

WATERLOO

CONNEC TING BUSINESS & PROPERT Y

RARE SEAT SURVEY Q3 2018

For further information contact us on 0118 970 9700 info@ra-re.co.uk

£0,000

£20,000

£10,000

£15,000

£5,000

COST PER WORKSTATION (CPW)

Based on an occupancy of 1:10 sqm

Slough tops the rental growth table with prime rents increasing by 10% over Q2 to £36 psf. Year-on-Year this represents 30% growth, with the next best performing town of Reading showing a 22% uplift. The highest rent paid outside the M25 (West) was at Madeira House, Windsor at a level of £41.20 psf.

Anticipation of the Elizabeth Line is having a major impact on the region in terms of widening its catchment area to bring a further 1M workers within an hour of Reading and over 2M more to Slough

and Maidenhead. These towns have been net beneficiaries of inward investment, with the likes of FM Global moving from Windsor to Maidenhead, Erricsson & Sanofi both moving from from Guildford to Reading, Firserv to Slough and Virgin Media are looking to move from Hook up to Reading to create a 300,000 sqft hub within easy reach of central London.

The supply and choice of new specification offices has continued to reduce for the 7th consecutive

year, to below 6M sqft across the region, down from 7.2M (2017) and 9.0M (2016). Newbury and Watford currently have less than 2 years supply of offices based on annual take up levels.

Going forward, locations benefitting from improved infrastructure and upgraded retail & leisure amenities are likely to see minimal disruption in the face of Brexit. Bracknell’s retail regeneration at The Lexicon and Reading regeneration around Station Hill are testament to this.

TOWN

RENT (PSF)E.G. £38.00

GRADE A (CPW)E.G. £6,200

GRADE B (CPW)E.G. £5,000

READING TC

£38.00 (PSF)

£6,200£5,000

GUILDFORD

£35.00 (PSF)

£5,700£4,600

NEWBURY

£24.50 (PSF)

£3,900£3,300

BASINGSTOKE

£27.50 (PSF)

£4,400£3,100

FARNBOROUGH

£26.50 (PSF)

£4,400£3,300

BRACKNELL

£25.00 (PSF)

£4,100£3,500

READING OOT

WOKING

HEATHROW

WATFORD

£37.50 (PSF)

£32.00 (PSF)

£33.50 (PSF)

£32.50 (PSF)

£5,900

£5,300

£5,200

£5,300

£4,100

£4,800

£4,100

£3,700

SLOUGH

£34.00 (PSF)

£5,400£4,200

WINDSOR

£40.00 (PSF)

£6,000£4,200

STAINES

£36.00 (PSF)

£5,700£4,400

WEST END

£110.00 (PSF)

£17,500£14,000

UXBRIDGE

£39.50 (PSF)

£6,000£4,300

STOCKLEY PARK

HIGH WYCOMBE

£27.50 (PSF)

£4,500£3,600

MARLOW

£28.50 (PSF)

£4,600£3,600

CAMBERLEY

£26.00 (PSF)

£4,100£3,400

MAIDENHEAD

£39.50 (PSF)

£5,800£5,000 CHISWICK

£53.50 (PSF)

£8,700£7,000

HAMMERSMITH

£57.50 (PSF)

£9,300£7,900