Peterborough businesses face shortage of quality office space

Figures released by commercial agents Savills show 100,000 sq ft of office space in the city was upgraded in the first half of the year.

The firm says there is a critical shortage of good quality office accommodation caused by a lack of development and the conversion of more than 600,000 sq ft of office space in the city for residential use over the last two years.

Savills warn the plush new offices might push up rents, which currently stand at £10 to £13 per sq fte.

William Rose, director at Savills Peterborough, said: “We’ve seen significant refurbishment activity in the Peterborough office market in the first half of 2017 as landlords look to take advantage of the critical shortage of good quality space available.

“As a result, we predict that following refurbishment works, landlords will be able to charge premium rents and encourage further office development in the city.”

Key refurbishments include:

Stuart House, in St John Street, where a new reception was installed last year and a cafe and gym have just been completed.

Northminster House, in Northminster, where FI Real Estate Management has invested £1.8 million in a refurbishment.

Midgate House, in Midgate, has also undergone some refurbishment.