Market snapshot

Office Market Pulse East Midlands Q4 2012

Q4 saw much improved activity in the East Midlands office market, giving cause for optimism as we head into 2013. There was a welcome increase in enquiry levels in Leicester, with a number of medium sized transactions completing, and further occupier demand for larger space over 10,000 sq ft.

Nottingham saw a substantial increase in take-up, including the letting of the last remaining floor in Pearl Assurance House, which concluded three deals in six months for Development Securities plc (jointly advised by LSH). This is a clear sign that comprehensive refurbishments can lead to successful lettings in tough market conditions.

With stock rapidly diminishing throughout the East Midlands, we are also likely to see more balanced landlord and tenant negotiations during 2013.

In this issue:

Encouraging signs for occupier take-up

Leicester saw consistent take-up levels in line with the same time last year. Take-up totalled 59,000 sq ft;  18,000 sq ft of which was grade A with two new build transactions at the prestigious Grove Business Park, J21 M1. For a breakdown of current take-up click here.

Q4 take-up in Nottingham increased considerably in comparison to Q3, with the majority of deals taking place out of town totalling 123,000 sq ft, compared to 36,000 sq ft in the city centre. For a breakdown of current take-up click here.

Significant occupational transactions

    

Property  Size Landlord(s)  Tenant/Purchaser Lease information
LEICESTER        
Grove Business Park, Enderby 10,694 sq ft                 

Grove Park Commercial Ltd

OPSEC

15 year lease

Confidential

Grove Business Park, Enderby 6,420 sq ft

Grove Park Commercial Ltd

Three Oaks Homes

15 year lease

£15.75 per sq ft

86-92 Regent Road 6,500 sq ft Tyne Investments Four LLP Hornbuckle Mitchell

10 year lease

£10.00 per sq ft

NOTTINGHAM        
Sherwood Court,
Lake View Drive, Sherwood Park
20,775 sq ft Sherwood Court Trust Countrywide Surveyors 10 year lease
£12.00 per sq ft
Oakwood Court Sherwood Park 
13,100 sq ft Antler Sherwood
Park (2) Unit Trust
Yusen Logistics (UK) Ltd Five year lease
£8.00 per sq ft
Pearl Assurance House 3,700 sq ft Development Securities Direct Health Group Ltd Five year lease
Rent confidential

Leicester LEP announces £7.8m grants for SMEs

Grants totalling £7.8m are up for grabs by manufacturing businesses in Leicester and the wider county of Leicestershire from the Government's Regional Growth Fund. Set to deliver over 1,000 jobs and lever £23.4m of private investment, it is anticipated this will have a strong knock on effect for the office market for businesses with links to this sector. Read more here.

The announcement is a welcome boost to continued investment in the city and follows City Mayor Sir Peter Soulsby's Leicester Office Market Review. The aim of the study, commissioned by Leicester City Council, was for LSH to review commercial office space in the city, identify the barriers to grade A office development, and consider ways to overcome them. Read our findings here.

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