The imminent start of construction of Kier Property and Invista Real Estate's development of the first phase of the 55,762 sq.metres (600,000 sq.ft.) Reading Central scheme looks timely.

That is because the steady recovery in the Thames Valley, particularly in Reading, has brought some balance back into the commercial property market. Indeed the figures for Reading in 2007 bear this out, said Michael Baker of Strutt & Parker, with lettings of 35,316 sq.metres (380,000 sq.ft.).

"In addition another 15,799 sq.metres (170,000 sq.ft.) is under offer. The outlook for Reading is very positive and this year should turn out ot be the best since 2001," added Baker.

The improvement is soundly based because there are occupiers for another 250,830 sq.metres (2.7 million sq.ft.) while current availability in the town centre is 139,405 sq.metres (1.5 million sq.ft.) of which 22% is Grade A.

The £200 million Kier/ Invista scheme will have three buildings and is scheduled for completion in 2009. Also in the construction pipeline is PMB Holdings 10,223 sq.metres (110,000 sq.ft.) Abbey Mill House which will have 15 floors.

"Another aspect ofthe timing is that rents have now reached £274.38 a sq. metre (£25.50 a sq.ft.), the highest since 2001," said Duncan Campbell of agents Campbell Gordon. "Acting with Colliers CRE this has been achieved on space in PRUPIM'S Apex Plaza," Campbell said: "Rents are really on the move in central Reading. They have increased by about 15% over the past 2 years, and the rate of growth is increasing."

The letting of 708 sq.metres (7,624 sq.ft.) at Apex to HSBC prompted Campbell to forecast prime rents of £301 a sq.metre (£28 a sq.ft.) with further rises over the next two years.

The outlook for the business parks outside the town is not as rosy. Town centres have become more popular in the past few years and this has hurt bu