Work is under way to construct a much-needed 18 acre extension to a business park in Yaxley.
Developer Barnack Estates UK has started building work on the second phase of the Eagle Business Park in Yaxley.
Commercial agents Barker Storey Matthews say there has already been strong interest in the development with five plots now under offer.
The start of development comes as new figures show the availability of vacant industrial space in Peterborough is at its lowest level.
Richard Jones, director of Barker Storey Matthews, said: “With availability of vacant industrial space in Peterborough at only 280,000 sq ft – an all time low for the city – the prospect of Eagle Park’s second phase is much anticipated.
"The attractiveness of the first phase of Eagle Business Park has initiated a strong level of enquiries for this new phase.
“We’re looking forward to seeing the first of the phase two buildings rising up this summer."
Rob Facer, chairman of Barnack Estates, said: "We are delighted to be in a position to start work on site, to help meet the employment and industrial growth in the area."
Eagle Business Park was established in 2010 and the first phase covers 25.7 acres and is home to a mix of trade counter, light industrial, showroom and food sector tenant occupiers and freehold owners.
The second phase will see a further 18.38 acres of commercial development with units ready for occupation by early 2019.
Individual planning applications are being submitted for over five acres of design and build units on the second phase with new speculative development schemes offering units to let or to purchase. Units will range from 2,500 sq ft to 21,660 sq ft, with some units designed to have their own self-contained yards.