Reading

Key Facts

Total floorspace: 1.3 million sq ft (124,730 sq m)

Missing retailers in central Reading: Virgin Megastores, Office, Habitat, Reiss, Aldo, Russell & Bromley, Molton Brown, Original Shoe Co, Borders

Top five under-sized retailers in central Reading: John Lewis (-46,177 sq ft), Marks & Spencer (-25,327 sq ft), Sainsbury’s (-19,680 sq ft), Next (-15,532 sq ft), Bhs (-14,024 sq ft)

Top centres that share the central Reading total catchment: Bracknell (8 per cent), Newbury (6 per cent), Slough (6 per cent), Maidenhead (5 per cent), Basingstoke (5 per cent)

Area of highest rental growth over the past five years: Broad Street (5.1 per cent)

Average rental growth over the past five years: 2.9 per cent

Latest deals: upmarket womenswear retailer Hobbs has signed for a unit in Hammerson’s Oracle shopping centre

Source: Experian/rental data from Churston Heard

The retail property market in Reading is reasonably static. The centre of the Berkshire town is relatively compact, with the majority of retail space split between the triangle of The Oracle shopping centre, Broad Street Mall and Broad Street itself.

As a result of space constraints, there is little development in the town, making the local market fairly stagnant. The void rate is only about 6 per cent, which is lower than the national average.

Lambert Smith Hampton director Chris Reeve, says: “The town continues to trade very well, but there are no new developmaents. Most of the major retailers are here already and there is the correct level of supply, which means the market is less dynamic and pretty static.”

Debenhams and House of Fraser anchor The Oracle, while other tenants include Zara, New Look, Karen Millen, Waterstone’s and Currys.digital.

That is not to say Reading does not suffer from some churn. Recent signings to The Oracle include Hobbs, Reiss and Ben Sherman. Elsewhere in the town, Tesco Metro has increased its presence and Somerfield wants to take the former Fopp unit.

Reeve says rents in Reading have followed the general national trend. “Retail across the country has levelled off, which has had an impact on rents,” he says. “In Reading, rents have not leapt up – they have jogged along for the past 12 months.”

One threat to Reading comes from the proposed£500 million regeneration of nearby Bracknell town centre. A new and improved Bracknell, with 650,000 sq ft (60,385 sq m) of retail space, could nibble away at some of Reading’s catchment area and Reading City Council is already looking at ways to add car parking and improve the road system in the town to reduce the threat.

Reeve says retailers should welcome the improvements. “It’s good news because the car parking and road system is under pressure in Reading,” he says. “The council is acting ahead of the redevelopment in Bracknell. It does not want to lose shoppers in the wider catchment area because of parking issues.”

It is a different picture for Reading’s out-of-town retail parks, where there are more voids and rent issues, according to Reeve. “There is a correct level of supply in the town centre, but out-of-town there is a sense of over-supply,” he warns. “One or two parks have fallen behind and are being forced to redevelop to make themselves relevant again.”

Demographics

Population 3.1 million

Total retail spend£13.98 billion

Weighted shopper population 310,385

Index of population with internet access 116

Cars per household 1.39

Annual gross household income£38,671

Most over-represented occupation Managers and senior officials

Most over-represented age band 25-34

Source: Experian