The Ipswich office market had a record year in 2015 according to Savills, with take-up hitting 160,000 sq ft (14,864 sq m), a 44% increase on the five year average of 90,000 sq ft (7,432 sq m).
The firm notes that last year saw significant activity in the town’s office market, with Suffolk County Council acquiring the 25,000 sq ft (2,322 sq m) Beacon House and Birketts Solicitors securing planning permission for a new 40,000 sq ft (3,716 sq m) headquarters on Princes Street.
Chris Moody, director of business space at Savills in Ipswich, comments: “Princes Street continues to grow in popularity and is fast becoming one of the prime business locations in Ipswich. Now known as the Princes Street Business Corridor and recently awarded Enterprise Zone status, there are a number of major projects that are currently underway in this area which will benefit from tax breaks and financial incentives, making it highly desirable to potential new occupiers.”
Take up is set to grow further due to the proposed delivery of a number of new schemes, which includes Connexsions 159, the first speculatively built office block in over two decades and planning consent for a new landmark building at 88-96 Princes Street. The scheme, which is being marketed by Savills on behalf of Ipswich Borough Council, will total 40,000 sq ft (3,716 sq m) and offer businesses premium Grade A office accommodation.
The impending delivery of prime new stock has set record rents for Ipswich, with the Birketts scheme pre-let at £18 per sq ft (£193 per sq m) and Connexions 159 being marketed at similiar terms. This is a noteable uplift on the average rent of good quality second hand stock in the town, which is currently £12.50p per sq ft (£134 per sq m).
Chris adds: “There has been a tangible uptake of business space across the office, industrial and mixed-use sectors, which shows a real level of commitment being made by occupiers in the town. This kind of activity is something that hasn’t been seen in Ipswich for a number of years and can be accredited to the growing importance of the Town as a major regional centre.”
Originally Published On: http://www.savills.com/