Market Snapshot East Midlands Q4 2015
Take up for the final quarter in 2015 was
87000sf – an increase on Q4 2014. The total take up figure for 2015 reached
c483000sf which is considered a strong performance in light of current stock
Q4 has seen the completion of the long awaited
award winning, inward investment deal to multinational technology company IBM.
The new facility is due to create 300 new jobs for the city during 2016 and
reinforces the New Walk area as a key office destination close to the new
Welford Place development which has attracted Mattioli Woods back to the city
Availability is at a marginal decrease from
Q4 with poorer quality Grade B/C accommodation accounting for 92% of total
stock. There is evidence of increased occupier interest in design and build
scenarios due to the limited availability of appropriate Grade A space with the
remaining serviced plots at Grove Park J21 likely to be fully committed during
Derby’s office take up totalled 60,414 sq
ft in Q4 2015, broadly in line with the quarterly average for the city. Q4 also
represented exactly 25% of the year’s total take up. In terms of the numbers of
transactions, 75% were in the city centre, and only a slightly smaller
proportion represented total floor space transacted. The largest transaction
was a relatively modest 12,000 sq ft letting to Signalling Solutions Limited at
Pentagan House to the north of the city centre.
Availability in Derby at the end of 2015
totals 551,000 sq ft and has reduced by just under 8% since the end of Q3 2015.
An acute shortage of Grade A space exists with only 6% of total supply
representing the best space.
Nottingham achieved its best quarter
take-up in over 3 years with 198,027 sq ft transacted in the final three months
of 2015. 70% of transactions, both in terms of floor space and number of deals,
took place in the out of town market. The largest in Q4 and all of 2015 being
the letting of the former Experian offices at Riverside Park to the Ministry of
Justice. This comprised two floors in Embankment House and totalled 41,500 sq
Elsewhere major lettings were achieved at
Sherwood Park to Highways England and Byron House in Nottingham city centre to
Availability dropped marginally to 1.628m
sq ft by the end of 2015 with the majority of supply continuing to comprise
Grade B/C accommodation. Only 10% of supply consists of Grade A offices.
Notable contributors to supply during Q4 include Canalside House and Cumberland
Place, both former RBS/NatWest premises in Nottingham city centr
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