While limited office supply in Peterborough has partly resulted in low take-up in recent years, those companies which have already made their home in the city don’t appear to be going anywhere.

It’s fair to say that the city’s office market has faced its fair share of ups and downs, especially as more than 600,000 sq ft has been converted to residential property since Permitted Development Rights (PDR) legislation was introduced back in 2013. However, on the plus side, this lack of stock has in turn led to an increase in Grade A rents, which have now hit a headline rate of £17 per sq ft, a growth of 8 per cent year on year since 2015.

This is good news for landlords who are now actively refurbishing their buildings to keep up with demand for good quality space. In fact, a number of schemes are undergoing significant improvement works. For instance, CEG’s Stuart House now has a café, free gym usage and classes, while FI Real Estate’s Lynchwood Park is set to undergo a multimillion pound refurbishment, which will include a new entrance, terrace, fitness suite and restaurant.

Although bad news for local employment, Thomas Cook going into administration last year has also seen an additional 112,000 sq ft of office space come back to the market. This has pushed the vacancy rate up to circa 7 per cent, but provides occupiers with more choice when it comes to Grade A space in the city, which should see take-up improve.

What’s more, there have been a number of occupiers who have recently shown their commitment to Peterborough. Travelex, the foreign exchange company, has renewed its lease for 47,000 sq ft and Anglian Water has taken an additional 12,000 sq ft, both at Worldwide House. Subsequently, Barker Perkins, the food processing equipment firm, will remain in its 148,000 sq ft HQ at Manor Drive and law firm Taylor Rose relocated from Northminster House to 13,931 sq ft within the newly refurbished Stuart House earlier this year.

This is positive news as many of these firms have signed new long-term leases, underpinning both the optimism and confidence of decision makers when it comes to the occupational market, which in 2018 saw just 43,000 sq ft of take-up.

Overall the future looks bright for the city especially as supply starts to meet demand and rents remain comparably cheaper to nearby office markets. Watch this space as Peterborough is set to hit its stride in 2020.

Further information

Read more: Spotlight: Peterborough – In high demand