Demand still outstrips supply in Derby but uncertain market has impacted deals
Uncertain economic conditions have challenged Derby’s commercial property market in 2016, but many sectors have performed steadily, according to a report by one of the region’s top property consultancies.
The Innes England Market Insite report has been monitoring the regional property market for ten years.
In Derby, the 2016 report highlights:
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SGS Engineering signed up for new 77,000 sq ft facility at Westside park
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The office sector was dominated by sub-10,000 sq ft transactions
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Lack of high quality stock affecting the entire market
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Availability in the industrial sector is at its lowest level since 2007
Industrial units to let in Derby
Nick Hosking, director at Innes England, said: “Take-up in the industrial sector enjoyed a bumper year in 2015, with the market struggling to keep up during 2016. Activity remains in line with 2014, however, and has still performed well. The largest deal of the year saw Derby manufacturer SGS Engineering sign-up for a new 77,000 sq ft facility at Westside Park.
“There is a lack of stock in the industrial sector, particularly high quality units and so second-hand space has dominated the market in the last 12 months. Availability levels are at their lowest since 2007 at just 2.8% and even less if poorer stock is excluded.”
See our current up to date listing of industrial units and workshops to let in Derby.
Shops to let in Derby
2016 was another positive year for Derby’s retail and leisure market.
Out of town Derby has performed well, with Kingsway Retail Park selling for £57.3m and the asset management of Wyvern continuing with a letting to TAPI.
Nick added: “Derby is dominated by its shopping centre, which has continued to perform well. The area between intu Derby and the Cathedral Quarter is still facing challenges but has been improved by lettings to Loungers, Cosy Club and xcercise4Less, positively breathing a new lease of life into the retail scene.
See our current up to date listing of shops to let in Derby.
“Derbyshire’s market has been affected by economic uncertainty, as investors have waited to see the outcome of the decision to leave the European Union, which has impacted on activity across the country. The industrial sector performed the best in Derby, with two transactions above £15m completed during 2016.
“In the face of this uncertainty, prime yields remained stable or edged outwards and the office sector still performed well, boosted by the purchase of Egg banking building at Pride Park.”
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