East Midlands rising

Office agents in the East Midlands point to improving market trends in Nottingham, Leicester and Derby, while Metropolis has noticed a rise in the number of requirements across the region.

Nottingham’s office market recorded 370,000 sq ft of office market deals in 2014 which is around the long term yearly average, helped by a 60,000 sq ft letting to Parexel at Castle Wharf, Nottingham, together with recent lettings to Arup taking 10,500 sq ft at City Gate West, Winbro Group taking 28,000 sq ft out of town, while Littlefish took almost 9,000 sq ft on Stoney Street. Metropolis has recorded a number of new searches in Nottingham this year. The Nottingham market has plenty of secondary quality offices, but little grade A space apart from the new Nottingham One scheme. Sladen Estates and Peveril Securities have bought the Nottingham site at Unity Square. The site has planning permission for up to 460,000 sq ft of office space, along with a hotel.

The Leicester office market saw continued improvement over the last 12 months with 300,000 sq ft let in over 50 transactions which were skewed towards the out of town market over the city centre. Movers included Travis Perkins taking 22,000 sq ft at Grove Park, Total Motion at Meridian Business Park and Hastings Insurance taking an initial 20,000 sq ft. The market has been bolstered recently by new searches. Office supply remains tight in Leicester and new space is restricted to Marlborough Properties’ just-completed Watermead scheme, with the forthcoming redevelopment of council offices at Welford Place next in the pipeline.  Inward investment enquiries increased in the second half of 2014 which agents hope will lead to significant lettings.

Derby saw total office take-up reach 150,000 sq ft in 2014 with University of Derby taking 33,000 sq ft at One Friar Gate Square, Interfleet Technology taking 13,000 sq ft at Roundhouse Road, Comex 2000 taking 6,000 sq ft at Cranmer Road and Citibank taking 4,461 sq ft at Pentagon House. However local agents bemoan lack of available space at its premier Pride Park office location, apart from the recently completed One Frair Gate Square scheme and there is approximately 70,000 sq ft of new space in the pipeline at Pride Park.

In conclusion, the East Midlands remains one of the quieter regions for office requirements, however there are signs of an upturn in office market activity in Nottingham, Leicester and Derby, which could translate into more deals later in the year.

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