A couple of years ago there seemed to be a “To Let” board on the majority of office buildings at Pynes Hill, but times are changing.
Recent take-up, combined with the deals which are currently going through, mean that there will shortly be almost no empty office space on Exeter’s main office park. Surveying firm Stratton Creber Commercial reports that it has five offices under offer at present with a combined area of 9,000 square feet, while only two further offices on the estate remain available via Stratton Creber Commercial.
This follows the recent letting of 2,107 square feet at Aspen House on behalf of Hunter Stoves, following their purchase of larger premises at Exeter Business Park. Terms for the assignment of their lease, at a passing rent of £25,500 per annum, were agreed in just six weeks from the property coming to the market.
The trend of declining office availability is mirrored elsewhere in the region and nationally, with the RICS Quarterly Market Survey showing that office availability across the UK is down by around 50% from a year ago, fuelled by rising levels of demand. The result has been a hardening of lease terms and rising rents, a trend which began in the South East but is now becoming apparent in the South West as tenants find that the available options are greatly reduced.
Jonathan Ling, of Stratton Creber Commercial, comments: “Many firms seeking to relocate in the Exeter area are very surprised at the small number of available options, whether they wish to rent or to buy. As a result, tenants can no longer expect the favourable terms, such as flexible lease terms and extensive financial inducements, which were being offered some years ago. I advise anyone who is planning to relocate their business to think ahead and start their office search well in advance of their proposed relocation date.”
