Chertsey is set to undergo a major revival with the residential sector leading the way, driven by town centre regeneration.
Fortunes are about to turn for the historic Thames-side, commuter belt Surrey town, believes regional expert Charlie Nicholson.
Charlie, Surrey-based partner at property consultancy Vail Williams, says the local authority’s drive towards town centre enhancement had helped spark the turnaround. Also, canny property investors repurposing vacant office assets for residential use will help to revitalise the town.
Previously, Chertsey had slowly lost its nucleus of office occupiers to other nearby towns which had either benefitted from town centre regeneration programmes or the delivery of high quality, refurbished office stock.
Runnymede Borough Council’s 2030 Local Plan promotes new town centre development and urban regeneration, alongside public realm improvements and grants for businesses to restore and smarten shop fronts.
Woking-based Charlie said:
“The repurposing of much of the town’s office stock has had the dual benefit of meeting the housing requirements of the adopted 2030 Local Plan to accommodate the borough’s growing population, whilst retaining asset value for the investors."
“There has been strong demand and residential values here have also been relatively stable, in spite of the economic challenges of the last 12 months, with average house prices at £428,590 in 2023."
“And there are more opportunities to convert offices for residential use in and around Abbots Way, Station Road and Pyrcroft Road in the town. But alongside the provision of more residential housing supply, we need to see more investment in Chertsey’s leisure and retail offer.”
He added that the council’s focus on the main shopping area was welcome and would help to support local residents, as well as potentially attracting more office occupiers back to the town. This follows successful regeneration schemes in Addlestone and Egham town centres.
Charlie said that Chertsey’s attractive location, good connectivity to the City and close proximity to Heathrow airport, meant that despite the ongoing conversion to residential there was still an active swathe of office demand with major occupiers including Samsung, Toshiba, Compass Group, F5, Kone Lifts and DHL.
“Whilst it is challenging to hold on to a nucleus of occupiers when you have towns such as Staines, Woking and Weybridge within a short drive, it is not impossible for us to see an office market revival in Chertsey, particularly amongst the SME market and provided there is further investment to reinvent assets here.
“One of the attractions of the Chertsey office market is that the rental tone within the town is comparatively discounted, with rents some 20 to 30% lower than equivalent accommodation in adjoining town locations and business parks.
“We are expecting this office space to attract occupiers back to the town, where rents for Grade A and Grade B sit at £25 to £28 per square foot (psf), currently. We are already seeing positive movement at out-of-town locations, including Hillswood Business Park.
Charlie added that the Chertsey industrial market remained active and, if developers or owner occupiers could get their hands on industrial land for development they would do well, with demand continuing to outstrip available supply and most units let immediately upon becoming available.
“This is what we have witnessed at Chertsey Industrial Park on Fordwater Trading Estate, which, boasting an EPC rating of A, has just three out of eight industrial units remaining to let. We also recently completed a 10,000 sq ft letting nearby to Brooklands Automotive and expected rents are now in excess of £20 psf."
“Chertsey has a range of second-hand industrial stock, and we have just concluded lettings on two small second hand industrial units in Chertsey of 1,800 and 2,600 sq ft achieving in excess of £16 psf. However, it would be good to see investment in the refurbishment of some existing industrial units in the area, improving quality and sustainability credentials to meet occupier demands."
“It would seem that the theme for Chertsey this year is one of reuse and reinvestment – whether repurposing stock for alternative uses to meet local demand or reinvesting in the town centre or its industrial stock."
“If achieved to the right extent, this focus on revitalising property assets and the wider town centre, will help give Chertsey its time to shine.”
