Savills Portugal

With Covid-19 restrictions set to ease and the return to the office now on the cards for many companies, a lot of thought has been given to the kind of space landlords are offering and, in turn, businesses are occupying. What’s clear is that a standard fit-out will no longer cut it for many.

While the quality of space in regional cities such as Peterborough was already improving prior to the pandemic, it is now more important than ever. What’s more, with Grade A rents ranging from £15-£19 per sq ft, the city, which is less than 45 minutes by train from London, has the potential to provide office accommodation for the possible redeployment of staff who, while retaining a presence in the capital, are looking for good quality, cost-effective space.

Consequently, there have already been a number of enquiries since the start of the pandemic from London-based occupiers considering the city as a viable location.

There are also those occupiers already situated in Peterborough who see their office space as key to both attracting and retaining staff. Landlords have therefore embarked on extensive refurbishment projects, with as much as 150,000 sq ft of space revamped in the last six months in order to accommodate this flight to quality.

As we know, it is no longer possible to merely pay lip service to sustainability, wellness and technology. As a result, the standard of space now on offer has changed to fit these requirements.

One example is CEG’s Stuart House which, following its extensive refurbishment, was once considered the only Grade A space available in the city centre. As a result of the works the building has seen in excess of 50,000 sq ft of lettings, including the expansion of Savills own Peterborough office.

Elsewhere in the city, Atlantic Leaf’s WestPoint offers 95,000 sq ft of premium quality space, alongside extensive amenities such as a gym and an onsite restaurant which is all set in the heart of acres of landscaped grounds. This has already attracted a number of high profile relocations including Western Union and JBA Consulting who took occupation towards the end of 2020, despite the pandemic.

Then there is FI Real Estate’s Lynch Wood Park and Maya Capital’s Worldwide House, both of which are about to commence significant refurbishment projects.

Ultimately, this renewed focus on quality has seen the amount of space now under offer rise dramatically in the past three months, which is likely to drive take-up as we head further into 2021.