The world's largest private industrial developer has won planning consent for a speculative development in Reading, capitalising on one of Europe's tightest logistics markets where vacancy rates have plummeted to just 1.2% and rents are climbing 15% annually.
Panattoni Park Reading will deliver two Grade A units totalling 9,890 m² (4,675 m² and 5,213 m²) on the M4 corridor, positioning occupiers within one hour's drive of 25% of the UK population. The Thames Valley market has become increasingly attractive to institutional investors, with prime logistics yields compressing to 4.25% as supply constraints intensify and e-commerce demand accelerates post-pandemic.
The development showcases what institutional capital is increasingly seeking: ESG-compliant assets with future-proofing credentials. Both units will achieve EPC 'A' and BREEAM 'Excellent' ratings, featuring 1.6 MVA power capacity, rooftop solar installations, rainwater harvesting systems, and electric vehicle charging infrastructure. These sustainability features are becoming critical for pension funds and sovereign wealth funds deploying capital into UK logistics.
Alex Mitchell, Development Director at Panattoni, said: "Panattoni Park Reading will deliver high-specification, sustainable warehouse space into the Thames Valley, one of the most under-supplied logistics markets in the UK. By developing speculatively, we are ensuring that space will be ready to meet occupier requirements at pace. At the same time, the project will generate new employment opportunities and deliver tangible benefits for the local community."
The development will create approximately 150 jobs and includes community benefits such as a new public footpath connecting Hoad Way to the High Street, addressing local infrastructure gaps that often complicate planning approvals in constrained markets. Construction begins March 2026, with completion scheduled for February 2027.
What makes this development particularly compelling for investors is the scarcity premium in the Thames Valley, where new supply has averaged just 185,000 m² annually over the past three years, compared to demand exceeding 465,000 m². Savills, Hatch Real Estate, and Lambert Smith Hampton are handling leasing for the scheme, which is expected to achieve headline rents of £12-14 per sq ft, reflecting the supply-demand imbalance.
People mentioned:
- Alex Mitchell, Development Director, Panattoni
Companies mentioned:
- Panattoni - Industrial real estate developer
- Savills - Leasing agent
- Hatch Real Estate - Leasing agent
- Lambert Smith Hampton - Leasing agent
Image Source: New Unit at Panattoni Park Reading
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