Fenn Wright commercial property market overview

We are pleased to report that 2024 was another successful year for the Fenn Wright Commercial Agency division, based in major hubs of Chelmsford, Colchester and Ipswich.  We handled a significant volume of freehold sales totalling nearly £36m and lettings in excess of £4.4m, with over 1,000,000 sq ft. transacted during 2024.

Fenn Wright are currently topping the league table as the ‘Most Active Commercial Agents’ in both Essex and Suffolk, according to the Estates Gazette.

Data taken from EG on 9th January 2025.

The industrial / warehouse sector continues to be the most robust sector of the market, with strong demand from both occupiers and investors, coupled with constrained supply underpinning values.

During the course of the year we have seen peak rental values continue to rise, with industrial rents holding well and reaching highs of £20 per sq ft. (on a new development of units sub 2,500 sq ft.) and office rents of up to £30 per sq ft. for Grade A stock in Chelmsford.  In Colchester, we have seen prime industrial rents hit £15 per sq ft. with office rents up to £24 per sq ft. for Grade A stock, and in Ipswich, prime industrial rents are approaching £12 per sq ft. with offices achieving £20 per sq ft.

Whilst activity in 2024 was not at previous record levels, we are nevertheless proud to have been incredibly active in the commercial property sector in Essex and Suffolk.  Here are a selection of our recent deals.

Michael Moody, Partner at Fenn Wright commented “Last year we saw some exciting new developments come to fruition and one of those was Systematic Business Park in Colchester, a development of 30 new-build industrial units.  We are delighted to have been appointed as sole selling agents for the impressive Wherstead Park, a fantastic investment/development opportunity in Ipswich, whilst in Chelmsford we have been appointed as selling agents for two substantial industrial investments located on Moss Road in Witham, priced at £2.5m and £5.5m stc.

As for what 2025 will bring, we are expecting another very busy year but not without its challenges.  As a result of the autumn budget, inflation and base rate figures may not decrease as quickly as was previously anticipated.  The additional employment costs in relation to NI and minimum wage revisions have already had an impact on local businesses and time will tell what affect this will have on the commercial property markets.”

Over the past year, our Commercial team has grown to over 25 people, providing the ideal combination of skills, local market knowledge and experience to assist our clients, old and new, with all their commercial property needs in 2025.  If you would like advice on any aspect of commercial property, please get in touch with one of the team here.

Chelmsford 01245 261226  l  Colchester 01206 854545  l  Ipswich 01473 232701