While 2003 will be challenging for companies seeking to dispose of space, the release of properties will help the market through stabilising supply and help stimulate demand through the lower costs. That is the view of Lambert Smith Hampton in its report on Reading in which it lists 99,505 sq. metres (1.07 million sq ft) being available in the out-of town market. In Reading town centre, two major schemes, Forbury Square and the Pinnacle, are nearing completion but total available stock is over 72,340 sq.metres (778,385sq.ft) in units of more than 464 sq.metres (5,000sq.ft).

There is also a large amount of space being leased by the Prudential. Yet the deals continue, such as Oracle subletting one of its five office properties near Reading to Dutch ING group. It will take 60% of the 6,038 sq.metres (5,000 sq.ft) building at 560 Thames Valley Park at £290 a sq.metre (£27 per sq.ft) Simon Fryer of Fryer Gilbert & Jepps also accepts that is a tough market for up to the next six months but believes there are signs of an upturn

Simon Fryer says:

"I base this on the fact that I.T. companies have had a reasonable two quarters' trading. We also believe that US companies become more active with the end of the war in Iraq."

He makes the point that Reading Town Centre has performed relatively well and Argent has done two deals at Forbury Square.

Kevin Middle of Campbell Gordon says:

"Reading has seen encouraging activity in the opening months of 2003."

Also noting the two deals in Forbury Square and also Regus at Sussex House. Here it surrendered the lease Network Rail and took a new 10 year lease on 1,672 sq.metres (18,000sq.ft) at £204.44 a sq.metre (£19 sq.ft) direct from the landlord.

Kevin Middle suggests that caution is needed:

"Because the reality of deals is different to the headline rents achieved when all factors are taken in to account."

He cites falling rents and long rent free periods as major factors in assessing the health of the market.