Report reveals city progress in office, industrial markets24 January 2012
A definitive report on the East Midlands commercial property market shows that Nottingham saw significant progress in 2011, despite another challenging year.
The Innes England Market Insite report has monitored the regional property market for the past decade - focusing separately on Nottingham, Derby and Leicester.
The report says that in Nottingham in 2011 there were:
- Signs that the industrial market was stabilising, signalling an end to the decline in activity seen over previous years
- The highest levels of activity in the office market in the region, with take-up levels at around 550,000 sq ft
- Major investments in the city, including the near completion of dual-carriageway work on the A46 and the announcement confirming the widening of the A453
- The extension of the tram network was also confirmed, which will create 8,000 jobs and boost the economy by £390m a year.
"The first six months proved positive but as we approached the summer uncertainty returned to the market and went on to characterise the final two quarters of the year.
"While the market still faces some real challenges, the significant infrastructure investments in road and rail provide positive foundations for Nottingham's future growth and competitiveness."
Straw says the impact of the Workplace Parking Levy began to influence occupiers' locational preferences in both the office and industrial markets as they prepared for the introduction of the levy in 2012, even though it would pay for the broadly welcomed tram expansion.
There was more positive news as David Cameron announced that an Enterprise Zone centred around the Alliance Boots Campus would be established.
And as one major infrastructure project (the dualling of the A46) nears completion, another significant announcement was made confirming the long-awaited widening of the A453.
The Insite report's analysis shows that take-up in Nottingham's industrial market stabilised at around 750,000 sq ft, which is on a par with 2010 levels, signalling the halt of the decline off recent years.
Straw added: "It was reassuring to see that the office market remained ahead of the ten-year average for the third successive year and our figures show that take-up levels, at over 550,000 sq ft, were the highest in the region - which is great news for the city.
"The figures were in line with take-up in 2010, which was no mean feat given that 2010's take-up was second only to 2007, which was when we saw the height of the market.
"Although overall take-up levels remained constant year on year, there was a significant shift in the nature of transactions, with the pre-letting activity in 2010 no longer present in 2011.
"Instead, market activity was made up entirely of existing building transactions including lawyers Browne Jacobson's commitment to 60,000 sq ft of space at Mowbray House in the city, closely followed by the announcement that patent and trademark attorneys Potter Clarkson was set to double its presence, moving from The Ropewalk to 45,000 sq ft in The Belgrave Centre (the former home of the Government Office for the East Midlands).