^{Source: Savills Research}

■ The strong demand from occupiers has resulted in several cycle high rents being achieved in core markets. Reading, Maidenhead, Bromley, Chiswick, Croydon, Guildford, Heathrow, Marlow, Reigate, Redhill and Watford have all achieved cycle high rents in Q2 this year. Record rents were achieved firstly in Reading where Gateley acquired 8,000 sq ft at The Blade paying £34.00 per sq ft. Maidenhead also experienced a rental high with Blackberry leasing 15,000 sq ft at The Pearce Building paying £37.50 per sq ft.

■ There have been several sizeable lettings in the market this quarter, most notably Ocado leasing 148,000 sq ft at Buildings 1 & 2, Trident Place, Hatfield Business Place and Amadeus acquiring 85,000 sq ft at the Building 4, World Business Centre, Heathrow. This is the only pre-let deal this year. In addition to these, there have been four deals over 50,000 sq ft so far this year. There is currently 531,368 sq ft under offer, which further highlights the strength of demand.

■ Total supply currently stands at 17.6 million sq ft, which is a marginal increase from Q1 and this can be attributed to the new speculatively built stock entering the market. Grade A supply currently stands at 6 million sq ft, which equates to 34% of available supply, this however includes buildings within six months of practical completion. The current vacancy rate for the market is 8.3%, which is the lowest figure since 2001.

^{Source: Savills Research}

■ 36 Clarendon Road in Watford was the most recent announcement of speculative development in the market where Boultbee Brooks Real Estate are developing 25,000 sq ft. Savills are joint agents on the building.

■ We expect rental growth to continue in the core markets as the new stock provides room for further rental uplift. Examples include both R+ in Reading and The Pearce Building in Maidenhead, where they are both quoting £39.50 per sq ft which would be record rents for the towns. The impact of Brexit on the occupational market leading up to the referendum was limited with take-up marginally behind H1 of 2015 and importantly since the referendum on the 23rd June there have been a number of deals signed, including Mallinckrodt Pharmaceutical on 20,000 sq ft in Staines, Dixcart on 8,500 sq ft in Weybridge and Dimensions UK on 10,000 sq ft on Arlington Business Park.

^{Source: Savills Research}

^{Source: Savills Research}