Business Weekly - Cambridge, UK

This is the key finding of a survey comparing business rents in more than 20 leading UK cities compiled by property agents across the country, including Dickens Watts & Dade in Peterborough.

The figures show that, after several years of being the UK’s lowest cost location for industrial premises, Peterborough is moving up the ‘league table’ and rents have passed those currently being paid in Chester, Ipswich and Liverpool.

Prime industrial units are now being let at rents up to £48 per square metre (£4.50 per square foot) - £8 per square metre higher than three months ago.

Peterborough is good value for office occupiers as well, with good quality buildings being let at rents of up to £118 per square metre (£11 per square foot). Only Ipswich at £97 per square metre offers better value - and in London’s West End, office rents are an astronomical £915 per square metre.

For retailers, Peterborough rents are still below mid table‚ at £2,153 per square metre (£200 per square foot) - higher than Bristol, Ipswich, Leicester and Norwich but cheaper than all the other listed cities.

Richard Dade of Dickens Watts & Dade said: “Although demand for office, industrial and retail property continues at a good level it is generally lower than last year. However, lettings have remained at a relatively high level, limited by the lack of supply of good quality accommodation.”

This lack of supply could push rents higher, Dickens Watts & Dade believes.

Richard Dade said: “The level of enquiries for high quality new office accommodation remains at a good level and rents are likely to be in the region of £150 per square metre when new office buildings are let.”