Market snapshot

Office Market Pulse East Midlands Q3 2013

The East Midlands office market saw steady take-up during Q3, with the majority of transactions in the sub-5,000 sq ft size bracket. As more buildings are considered for conversion across the region, we expect the over-supply of secondary stock to significantly reduce in the coming months.

You can download a PDF version of this East Midlands Office Market Pulse, or to read and sign-up to receive Office Market Pulses from other UK centres, click here.

In this issue:

Out of town take-up dominates in East Midlands

  • After a sluggish start to the year, Nottingham saw an increase in office take-up during Q3, with a total of 72,500 sq ft let or sold. Take-up continues to be comprised of relatively smaller transactions and reflected an even balance between city centre and out of town. For a breakdown of current take-up, click here.
  • Leicester saw 41,000 sq ft of office take-up during Q3. Interestingly, following strong city centre take-up in Q2 (70,000 sq ft), 75% of Q3 take-up has been out of town (32,198 sq ft). As with Nottingham, transactions have been predominantly smaller, with all but one under 5,000 sq ft. For a breakdown of current take-up, click here.
  • In Derby, 55,000 sq ft of office space was transacted during Q3, albeit a large proportion of this related to the sale of Derbyshire Building Society’s former HQ at Duffield Hall, purchased by Wheeldon Homes for conversion to residential use. For a breakdown of current take-up, click here.

Significant occupational transactions Q3 2013


Size (sq ft)

Landlord/ Vendor Tenant/ Purchaser Lease information
Brookes House, Oadby



Goliath Developments

Freehold sale at £675,000 £70.00 per sq ft
Abbeyfield Road, Nottingham


Undisclosed Circle Partnership 5 year lease
£11.50 per sq ft
Priory Court,
Derby Road, Wollaton, Nottingham


Undisclosed Care Training 5 year lease
£10.00 per sq ft

Growing trend for conversion

  • As steady take-up continues there are signs of renewed confidence from developers in preparing sites for future commercial development. Commercial and residential conversion planning applications in Leicester city have seen an increase, and on-site enabling works have commenced on both city centre and out of town projects. Of particular note is the refurbishment works underway at St Georges Way in the city centre, where MRP Developments are progressing with a 22,000 sq ft office scheme. For a breakdown of Leicester supply by grade, click here.
  • Supply of grade A space remains at an all-time low in Nottingham. However, the massive over-supply of grade C space is starting to reduce significantly as more buildings are being considered for residential conversion. For a breakdown of Nottingham supply by grade, click here.
  • In Derby, availability levels have remained fairly static. For a breakdown of Derby supply by grade, click here.

Investment hits six-year high

Our Q3 2013 UK Investment Transactions report shows that investment in UK commercial property hit a six year high in the third quarter of 2013.

At £11.6bn, quarterly investment levels are 50% above the post-2010 market average, and 40% up on the Q2 total of £8.24bn.

What does this mean for the market?

To view our latest UK Investment Transactions (UKIT) report, please click here.

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