Take up of office stock in the East Midlands was looking positive in the first quarter of 2018 compared with the same period last year, according to new data analysis by national commercial property consultancy Lambert Smith Hampton (LSH).
Its latest Office Market Pulse for Q1 2018 reports that take-up in Nottingham for Q1 2018 was 74,937 sq ft, which is down 38% on the previous quarter but in line with Q1 2017.
Phil Quiggin, head of office at LSH Nottingham, said the letting of 19,000 sq ft at City Gate in Nottingham City centre to Nottingham Trent University was the largest of the 20 biggest deals in Q1 and the Office Market Pulse reveals that availability is now below 1.16m sq ft across the wider market, split equally between city centre & out of town.
Only 12% of available stock is grade A, while 30% is grade C and is in need of refurbishment
In nearby Leicester take up for Q1 2017 was 46,451 sq ft, which is 47% higher than the same quarter last year and just 5% down on Q4 2017.
There were 13 significant deals in the city centre, three of which were more than 5,000 sq ft. The largest deal in the quarter was University of Leicester’s letting of a 17,700 sq ft at Enkalon House, Regent Road.
However, availability continues to fall in the city centre and it now stands below 562,000 sq ft across the wider market, two thirds of which are located in the city centre. The only building providing Grade A space in Leicester remains Colton Square accounting for less than 4% of total supply.
In Derby, office sector take up was 19,761 sq ft, which was 92% higher than the same time last year, but down 49% on Q4 2017. The largest of the 12 lettings was for 3,700 sq ft at Ely & Lincoln House, Stephensons Way, Wyvern Business Park and availability is now under 400,00 sq ft, 39% of which is grade C and under 8% grade A.
“Across the East Midlands, enquiries suggest that the second quarter this year will shape up to be an active quarter but take up will again be held back by limited availability,” added Phil Quiggin. “There is increased activity surrounding proposals for new build schemes in all three cities. The majority of schemes continue to marketed ‘off plan’ but it is well known that office occupiers often need to relocate quicker than new buildings can be built.”