Market snapshot

Office Market Pulse East Midlands Q3 2012

The East Midlands office market continues to feel the impact of poor market conditions and lack of grade A space. Consequently total take-up has fluctuated substantially during the year.

Nottingham has seen a 21% drop in take-up from 108,674 sq ft in Q2 to 86,743 sq ft in Q3, with just two deals transacted over 10,000 sq ft. In contrast, Leicester take-up increased by 50% with one large deal of 59,000 sq ft contributing significantly to the overall figure.

In this issue:

Encouraging signs for occupier take-up

Take-up in Nottingham has decreased in comparison to Q2. However, in contrast to previous quarters, there was relatively high take-up of grade A space in Q3, totalling 32,792 sq ft in a combination of city centre and out of town deals. For a breakdown of current take-up click here.

Leicester saw a 45% increase in take-up from Q2, totalling 105,437 sq ft with one large transaction of note (59,000 sq ft). Over 91,000 sq ft of the total take-up was out of town. We are, however, seeing an increase in city centre enquires which is encouraging for Q4. For a breakdown of current take-up click here.

Significant occupational transactions

Property Size Landlord(s) Tenant/Purchaser Lease information
NOTTINGHAM         
Pearl Assurance House 7,299 sq ft Development Securities National Press Association 10 year lease
£12 per sq ft
Pearl Assurance House 3,718 sq ft Development Securities Turner Townsend 5 year lease
£11.50 per sq ft
The Pod 19,938 sq ft Bildurn Properties TDX Group 10 year lease
Rent confidential
LEICESTER         
Former BAE
Systems site,
Radar Road 
59,812 sq ft DCS 452 Ltd Babcock  10 year lease
£9 per sq ft         Agreement for lease signed
Ground Floor, 674 Bridge Park Road Thurmaston 7,378 sq ft         Raynsway Properties  NHS     2 year lease
£9.30 per sq ft

Leicester City Council launches development study

City Mayor, Sir Peter Soulsby, has set out a vision to create a thriving city centre through heavy investment over the next five years, making Leicester a more accessible and attractive destination for shoppers, visitors, businesses and investors.

Key projects include the extension of the city centre’s pedestrian area and creation of Jubilee Square and Cathedral Gardens. These schemes will form an important stepping stone between the Old Town, the retail area and areas beyond the inner ring road, including the Waterside, Jewry Wall, the Castle area and the Magazine gateway. Read more here.

In conjunction with Warwick Business Management, we have concluded our office study on behalf of Leicester City Council and the findings will be presented later in the year. Contact us for more information.

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Jane Taylor | Director - Office Agency | Leicester
Jane Taylor

0116 255 2694

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