Peterborough warehouse costs hit record high as firms stay in the UK
Companies looking to move into Peterborough are facing record prices to lease or buy warehousing across the city, it has been claimed.
The soaring costs have been fulled by a combination of the growth in ecommerce, companies stockpiling goods ahead of Brexit, rising shipping costs and longer delivery times while Covid-19 has encouraged many manufacturers to focus on making their products in the UK.
While some firms may not be able to afford to move into Peterborough, the city’s workforce, infrastructure and growth plans are still more likely to encourage firms to make the move.
Julian Welch, director of Eddisons in Peterborough, said: “High level of demand has resulted in an upwards pressure on the cost of accommodation, with very small industrial units fetching up to £11 per sq ft leasehold/£165 per sq ft freehold and even ‘big warehouse’ stock pushing up to £7 per sq ft leasehold/£125 per sq ft freehold. These are levels never before seen in Peterborough.”
For AgriGrub, of Soham, which uses sustainable solutions to tackle food waste, the high cost put paid to hopes of a move to Peterborough.
Joe Halstead, managing director, said: “After much searching we did find a new site, but not in Peterborough as rent was too high.”
Tom Hennessy, chief executive of Opportunity Peterborough said: “Even though the cost of property has increased, investors are telling us Peterborough’s location, agile workforce, infrastructure, and ambitious growth plans mean it still offers significant competitive advantages over many other UK locations.”