The Peterborough commercial property sector has experienced a dramatic decrease in stock of existing properties in recent years, due to the popularity of both small and large industrial premises. As a result of this dwindling supply, a number of new estates and commercial development opportunities have arisen in and around Peterborough.
Our annual availability schedule for commercial property Peterborough (which was collated earlier this month) shows the current availability for industrial property in Peterborough. According to our research, properties marketed by all agents' currently stands at a total of 77 units, ranging from 200 sq. ft. to more than 100,000 sq. ft. in size.
In comparison to availability in May 2015, this shows a 57% decrease in stock, a reduction of 50 units in total. The most notable decrease in availability was for properties between 0 - 2,000 sq. ft. in size, where stock has decreased from 37 units to 17 in just over a year.
It is important to recognise that due to the size of these units, demand is generally much higher, and they tend to move much faster. At the other end of the scale, industrial properties exceeding 30,000 sq. ft. are also in limited supply with only five currently available on the market.
As a direct consequence of this diminishing supply of available properties, a number of new developments are appearing in and around the Peterborough area, ranging from design and build projects to speculative construction and development land.
Kingston Park - This new estate, which is being developed by Barnack Estates UK Ltd, is situated adjacent to the A1139 Frank Perkins Parkway in Hampton, close to the Willis & Gambier and Amazon distribution facilities.
The estate comprises a total of 16 plots, 14 of which have already sold. The large majority of the plots have been purchased by owner occupiers including Remark Group, Vogel Group, Stanground Autos and Webbs Motorcycles, who have all had custom design and build facilities constructed.
Lakeside Court - Being built on a speculative basis over plots 15 & 16 of Kingston Park with only four units currently available, sizes ranging from 2,500 to 8,700 sq. ft. Occupiers include Capital (Hair & Beauty), Vanquish Autos and DFS.
Titan Drive - Another significant new development, situated in Fengate, Peterborough, comprising two separate phases.
The First phase consisted of 18 trade counter/warehouse/industrial units with eaves heights ranging from 7-11m. Recent occupants include Selfcair UK Ltd and, currently, only two units, of 5,181 sq. ft. and 10,206 sq. ft. remain vacant.
The Second phase of this development will provide a range of design & build development opportunities with plot sizes ranging from 0.31 - 4 acres equating to potential units of between 2,500 sq. ft. and 150,000 sq. ft.
Chancerygate - Last but not least, Chancerygate have recently bought a substantial site on Padholme Road and have announced the availability of a new development which is to be called Peterborough Trade Park. It is planned that they will be offering occupiers trade or showroom units ranging from 1,500 sq. ft. to 30,000 sq. ft. A good level of early interest from a number of trade counter occupiers is being shown towards this new development.
While these developments don't specifically help ease the shortages in supply for the units that are in highest demand, they still help in addressing the wider issue of decreased supply. Due to their popularity, it is evident that there is still demand for units of all sizes.
However, to directly target the demand for smaller (0 - 2,000 sq. ft.) units, a number of developments are in the pipeline with delivery expected in 2017.
On the larger scale of new developments, Roxhill Park at Gateway in Alwalton is a 240 acre distribution park with planning consent for around 5,000,000 sq. ft. in total. Units will be starting from 95,000 sq. ft.
Yearsley Group and Geo Post have already purchased plots on site and a number of other prominent occupiers are expected in the coming months.
The latest company to announce occupation at the Gateway development is House of Fraser, who are constructing a 750,000 sq. ft. distribution hub with occupation expected in less than two years.
At present, new development opportunities in Peterborough comprise:
The shortage of current industrial stock is leading to pressure on rents and prices. Until recently, second-hand industrial units had been selling at £50-£70 per square foot, whereas new build prices (due to inflation and pressures in the building industry) need to achieve prices of £75-£100 per square foot.
The Peterborough office of Barker Storey Matthews http://www.bsm.uk.com/ expect stock levels for second-hand units to remain very low for the foreseeable future which will continue to drive prices in this upward trend.
The level of new development is positive to see for a number of reasons. Not only do these new estates provide opportunities for the expansion of local firms, but they also attract occupiers who are not active in the city at present.
Over a number of years, Peterborough has demonstrated that it is one of the UK's fastest growing cities and in order to keep growing at this fast rate, new industrial development is essential.
As new arrivals are confirmed, Peterborough benefits from further job creation - whether this is down to the requirement for further construction work or more long term in operating the new facilities after occupation.
While Industrial properties are one of our core focuses; it is important to note that there are also a number of new office development sites across the city, including Opus Business Park, Cygnet Park at Hampton, and Woodview in Thorpe Wood.
Our team of expert surveyors, coupled with our longstanding involvement within the local and regional commercial property markets, has led to us being heavily involved in all of the major new commercial developments in the area.
Contact us for more information regarding commercial properties, commercial developments and land in and around Peterborough.
Barker Storey Matthews has acted successfully for a number of major corporate clients, private property companies, Local Authorities, individuals, financial institutions and pension funds on a whole variety of property matters.