NewFlex, a flexible workspace operator, is one of the first occupiers of One Station Hill, the 275,000-square-foot office development in the heart of Reading. The lease, and its impact on the success of the scheme, led to the judges awarding it a CoStar Impact Award of the Year.
The company signed a lease for 31,765 square feet across Levels 1 and 2 of the building in June 2024. Across from Reading Station, one of the UK’s largest transport interchanges, One Station Hill is the cornerstone of a £850 million, 2.5 million-square-foot masterplan to revitalise the wider area.
NewFlex has recognised Reading’s huge potential for growth and corresponding need for premium flexible workplace, and seen the area as an extension to its operations in the Oxford-Cambridge Arc. It is already in the process of signing occupiers for a second quarter 2025 opening.
Since the pandemic, serviced offices have tended to sign management agreements rather than traditional leases but NewFlex has signed a 15-year traditional lease.
About the project:
NewFlex signed a 15-year lease with a 12-year break at a new headline rent for Reading, at the time, of £46 per square foot with fixed annual uplifts, The prelet with NewFlex also helped to shape conversations owner Lincoln MGT was having with multinational occupiers PwC and PepsiCo.
Throughout the initial design process, Lincoln MGT’s strategy for ONE Station Hill included attracting a high-quality serviced office operator. The reception area and Levels 1 and 2 were designed with that in mind. A floating internal staircase and dedicated lift filters coworking tenants up to the serviced office reception on Level 1, and retains the main core lift lobbies for other occupiers.
NewFlex will operate as The Quad, a "five-star workspace retreat", as part of the brand across locations in the Oxford and Cambridge arc and the Thames Valley. The Quad at One Station Hill has a members’ lounge on Level 1 alongside large and small meeting event and breakout spaces, wellness rooms and phone booths. On Level 2, the space offers larger office suites with private breakout spaces and kitchens specifically designed for corporates looking for regional workspace or to downsize.
Occupiers of The Quad will be able to enjoy the wider estate which has been revamped by Lincoln MGT into a series of open spaces and building. It also created a pedestrian link between the town centre and the station. Station Hill has also contributed to over £50 million of social infrastructure, with 2 acres of public realm at the core of the scheme. There is a trail of specially-commissioned artworks running through the public realm between the station and the town centre.
What the judges said:
"The deal with NewFlex is an example of the changing market in terms of cowork spaces being a catalyst for wider placemaking and future lettings. The fact that they have taken a 15-year lease bucks the trend in terms of the more standard management agreement, and demonstrates their commitment and belief in the scheme," said Steve Eccles, project director, Socius Development
"It was testament to the quality of One Station Hill that convinced NewFlex to take a conventional lease rather than just a management agreement. The fit-out they are now embarked upon will set the standard in the flex space in the Thames Valley and make it a truly compelling offer. We understand they already have a number of companies poised to take space in the building and we look forward to reading of their success going forward," Jonathan Mannings, founding director, Rare Consulting (UK) said, while Eamonn D'Arcy, professor of international real estate at the University of Reading described it as a "significant new tenant in the centre of Reading which may be a catalyst for attracting similar tenants in the future".
They made it happen:
The tenant's chief executive, Steve Jude, CEO, the managing director of Lincoln Property Company in the UK, Alex Aitchison, managing director of MGT Investment Management, Callum Thorneycroft,took part in the deal. Ollie McLeod, director and Stuart Austin, head of South East office markets, both of JLL, and Tom Fletcher, director at Hatch, represented Lincoln MGT.