Office market supply remains extremely tight in Leicester with both city centre and out of town markets seeing a shortage of grade A and good quality second-hand space across all size ranges. Marlborough Properties' scheme at Watermead - on target for completion in June 2015 - will provide a welcome boost to out of town supply. In the city centre, remaining prime space at Colton Square has received strong interest, and news on further new build space in the city with the development at Welford Place, the site of the former Leicester City Council at New Walk, is eagerly anticipated. For a breakdown of Leicester supply by grade, click here.
The Nottingham office market remains awash with sub-standard office space, much of which continues to be considered for alternative use. Almost 2m sq ft of office stock is available across the city centre and out of town markets. Nottingham has only 133,000 sq ft of available grade A office space (including the Nottingham One development, yet to be completed), representing less than 7% of total stock. No new offices have been built in the city for several years, but despite increasing pressure on supply and occupier demand for prime space, developers remain nervous given the vast amount of secondary stock still on the market (albeit much of which does not meet occupier requirements). For a breakdown of Nottingham supply by grade, click here.
Derby faces an acute shortage of office supply with just one new grade A office building available; One Friar Gate Square. With Pride Park now reaching completion, there is increasing pressure for new opportunities to satisfy occupier demand. A number of sites have planning consent for office development, but with Friar Gate Square remaining vacant for over three years, the need for further space has been questioned. However, market sentiment indicates that the location of Friar Gate Square is not suited for many occupiers who seek either a Pride Park address, and/or closer proximity to the train station. For a breakdown of Derby supply by grade, click here.