According to LSH’s annual South West Office Market Report, which provides developers and investors with a detailed insight into the city’s commercial property market, there is currently just 275,000 sq ft available to businesses looking to relocate or expand into bigger premises – the lowest level since 2013.
The report stated that a significant amount of space had left the office market having been converted to student and residential accommodation, following the Government’s relaxation of the rules surrounding permitted development (PD).
While take-up, or leasing activity, had been healthy for the first six months of 2017 at 85,000 sq ft, the research indicated that the remainder of the year was unlikely to see any sizeable deals in Plymouth.
Commenting, Peter Musgrove, Head of Office Agency South West for Lambert Smith Hampton (LSH) said that the refurbishment of the historic Melville Building at Royal William Yard was a significant development for the city.
“Urban Splash’s major redevelopment at Melville will provide up to 45,000 sq ft of high quality office space, with delivery scheduled for mid-2018,” he said.
“Elsewhere, at Millbay, there are plans to redevelop the Pavillions site to include a new leisure venue and potentially offices, although that could take several years to start. However, other schemes, such as Higher Home Park and Western Gateway, will provided new, much needed Grade A space to the northern fringe of the city.”
According to the report, headline rents in Plymouth have remained “relatively stable” for several years, currently standing at £16.50 per sq ft.