Market snapshot

Office Market Pulse East Midlands Q4 2013

The East Midlands office market saw a strong finish to 2013 with record annual take-up in Nottingham and a flurry of transcations completing for Leicester.

As more buildings are being refurbished across the region, signs are encouraging for a return to speculative development.

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:

Strong end to 2013 for East Midlands office market

  • The Leicester office market saw a flurry of activity in Q4 2013, with 103,000 sq ft of space transacted; 68% of which was out of town. Total annual take-up reached 276,000 sq ft (2012: 294,009 sq ft). For a breakdown of Leicester take-up, click here.
  • Following some of the largest transactions of the year, Nottingham also experienced a strong Q4 with take-up totalling 132,000 sq ft. Annual take-up reached a record level of 412,439 sq ft. For a breakdown of Nottingham take-up, click here.
  • Derby office take-up reached 72,653 sq ft in Q4 boosted by two large transactions at Wyvern Business Park (17,400 sq ft) and London Road (20,400 sq ft). After a stable year, annual take-up reached 170,973 sq ft. For a breakdown of Derby take-up, click here.

Significant occupational transactions Q4 2013


Size (sq ft)

Landlord/ Vendor Tenant/ Purchaser Lease information
Newstead Court
Sherwood Park


Babcock Plc (assignor)

E.ON UK Plc (assignee)

Existing lease until Sept 2017
£12.60 per sq ft
The Curve
NG2 Business Park


Miller Birch Confidential 10 year lease
£15.00 per sq ft
Lancer House
Scudamore Road


Bonneycroft Ent  DCS 452 Ltd Freehold sale at £775,000
Renaissance House
Princess Road West Leicester


PB Properties  NHS  5 year lease
£9.50 per sq ft 

Speculative development on the horizon?

  • 2013 saw a welcome return to larger agent-led requirements, with a noticeable increase in activity from professional occupiers. The lack of grade A space has led to increased planning applications and developer interest in schemes such as the development opportunity at Welford Place by Leicester City Council. As we have seen with proposals for 34,000 sq ft at Watermead Business Park, speculative development is now being considered in prime locations. For a breakdown of Leicester supply by grade, click here.
  • The acute lack of grade A space has yet to trigger any speculative development in Nottingham, although we have seen increased refurbishment of grade B buildings to provide much needed quality space. For a breakdown of Nottingham supply by grade, click here.
  • Although grade A space reduced significantly at Pride Park, Derby, there are still no occupiers signed up at Friar Gate Square; the only speculatively built grade A office building in the region. We do however expect to see increased refurbishment of secondary stock and further possible speculative development, to meet demand for quality office space. For a breakdown of Derby supply by grade, click here.

Commercial property investment emerges from recession

Our Q4 UK Investment Transactions (UKIT) report reveals that the UK commercial property sector had a stellar end to 2013, with investment at levels that we haven’t seen since before the global financial crisis. The quarterly investment figure of £17.01bn and the 2013 annual investment total of £44.94bn are both the highest the market has seen since 2007.

The regional markets also saw a strong finish to 2013 with investment volumes rising by 80% in the second half of the year, in comparison with the first, to drive an overall annual increase of 61%. The East Midlands region saw investment volumes increase from £0.32bn to £1.15bn in 2013.
Notable deals included:

  • Marks & Spencer’s regional distribution centre at East Midlands Distribution Park to Tritax for over £82m
  • Riverside Retail Park Northampton to M&G Real Estate for £70m

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

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