Demand for more commercial property to let and buy in Nottingham
NOTTINGHAM’S commercial property market performed well across all sectors despite a year of uncertainty, according to a report by one of the region’s top agencies.
The Innes England Market Insite report has been monitoring the regional property market for ten years.
In Nottingham, the 2016 report highlights:
- Refurbished offices continued to attract new occupiers
- Prime retail rates increased
- Industrial activity remains consistent at 1.4m sq ft
Ben Taylor, retail director at Innes England, said: “Nottingham continued to be a top retail location last year, with retail in the city focusing heavily on intu and its two shopping centres. Zone A rents continued to rise in prime areas including Nottingham’s Clumber Street and the intu Victoria Centre.
“Work to transform the Broadmarsh area started in January 2016, which will hopefully attract further investment in the area.”
Giltbrook Retail Park championed retail activity out of town, securing a record rent for the former BHS unit to FABB Sofas, while Next committed to an increase in store size in 2017.
Offices to let in Nottingham
Nottingham’s office market performed strongly in 2016 thanks to a large number of transactions, however, total take-up was hampered by a lack of larger scale transactions.
Director Craig Straw, added: “Availability in the office market fell to its lowest in a decade, which is illustrative of the strength in the Nottingham market. The city was once again challenged by a lack of Grade A space throughout 2016. There were, however, a number of notable developer-led transactions, including Miller Birch’s acquisition of The Guildhall and the sale of the former Eastside scheme, both of which signpost the market’s intentions to address dwindling levels of stock. Looking forward, the 200,000 sq ft Government Hub is also set to add significant impetus to the market, around the railway station.”
See our current up to date listing of offices to let in Nottingham.
Industrial units to let in Nottingham
Availability of Grade A stock continued to challenge the industrial sector too, with levels at their lowest since 2007. However, take-up remained above the ten-year average for a third year running.
Craig said: “The industrial market is still hampered by a supply of good quality stock, with 96% of all available space currently second-hand. There is huge demand or Grade A space, with the recently constructed Southglade Park an BSP Holdings’ Lewis Industrial Estate both letting well. Progress is also being made on the disposal of Imperial Tobacco’s 43-acre Horizon Factory site, with expectations that much-needed new supply will soon be entering the market.”
Investment levels in Nottinghamshire remained strong, with a total of ÂŁ298m of transactions completed. Prime yields remained stable across all main sectors despite economic uncertainty, however overall investment into UK commercial property reduced by 20% in comparison to 2015.
Craig said: “Last year there were significant transactions in both the industrial and retail sectors: the £77.3m purchase of DSG Retail’s Regional Distribution Centre in Newark and two units totaling more than 70,000 sq ft were let to H&M and River Island for £23.3m. The rise in prime rents across Nottingham over the past 12 months is really good news, especially in such an uncertain market.”
See our current up to date listing of industrial units and workshops to let in Nottingham.
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