What are the levels of activity in Plymouth’s Office Market?
Our Commercial Agents in our Plymouth office report that the market continues to strengthen, with increasing demand for both high-end refurbished suites and more affordable, non-refurbished stock. Activity has picked up pace across the city, supported by improving sentiment and a steady return to the workplace across a range of sectors. In this article by commercial agent Anna Jackson, we look at recent deals we’ve worked on and how the market is performing.
Prime Office Space
At the premium end of the market, Vickery Holman has been instrumental in the success of Barrack Court in Derriford. This newly built, high-specification office scheme, owned by Plymouth City Council, is now nearing full occupancy. Rental values for the suites range between £13–£14 per square foot, reflecting the appeal of modern, energy-efficient space in a strategic out-of-town location. The scheme’s strong performance demonstrates how occupiers are prioritising quality and sustainability in their workplace decisions.
Similarly, at Parkway Court, a comprehensive refurbishment programme has seen rental values exceed £16 per square foot. We have worked closely with the landlord throughout the refurbishment and marketing process, securing tenants and driving up rental levels from an initial quoting price of £14 per square foot earlier in the year. The upgraded specification, improved EPC ratings, and modernised finishes have all contributed to strong demand and enhanced returns for our client.
Secondary and Tertiary Office Space
While prime office space remains in high demand, the market for secondary and tertiary offices is also showing signs of resilience. Enquiries for these more affordable spaces are rising, with rents typically in the region of £10 per square foot. Interestingly, we are seeing a diversification in tenant demand, with a growing number of enquiries for non-traditional office uses such as medical consulting rooms, gym and wellness services, and beauty treatment businesses. This shift is being fuelled by the relative affordability of office accommodation compared to retail or industrial premises, where higher rents and business rates can act as a barrier to entry.
One of the most active segments of the market is for smaller suites under 1,500 sq ft. These spaces appeal to SMEs, start-ups, and professional service providers seeking flexible, well-located offices with good parking provision. Out-of-town locations with easy road access and on-site parking are becoming increasingly attractive as businesses look to balance accessibility with convenience for staff and clients alike.
The investment and owner-occupier markets are also showing renewed activity. At the former Royal Eye Infirmary, Vickery Holman has been marketing a series of office suites created as part of a wider redevelopment. These units, offered on long leasehold terms, have achieved strong interest and values between £125 and £152 per square foot. Six of the eight available suites have already been sold or are under offer, underlining the appetite for well-located, quality office space suitable for purchase.
We also recently acted jointly with Allsop in the sale of Peninsula House in Saltash. This L-shaped office building sat on a site of 0.618 acres and was offered at auction. The transaction concluded post-auction, achieving a price in excess of the £350,000 guide – a reflection of continued investor interest in well-located freehold offices, particularly those offering potential for future redevelopment or change of use.
Outlook for the Plymouth Office Market
Looking ahead, we expect to see continued demand for well-specified offices, particularly those that can offer flexible layouts, energy efficiency, and on-site amenities. The growing trend for hybrid working means that occupiers are increasingly looking for “right-sized” space that suits current working patterns without compromising on quality.
With our extensive knowledge of the local market, deep agency expertise, and in-house building surveying and lease advisory teams, Vickery Holman is well placed to support both landlords and occupiers navigating a changing office landscape.
If you would like to discuss an office letting, investment or development opportunity in Plymouth or across the South West, please contact our Agency team.
