Investment in Nottingham’s commercial property market is at an all-time high, according to a new influential report in the state of the sector in the city.
Innes England’s 11th Market Insite report – which monitors trends in the regional property market – revealed Nottingham benefited from £510 million of investment activity in 2017 – the highest level recorded in 11 years.
The report also revealed that rental increases were recorded across office, industrial and retail sectors, deals struck with HomeServe, Framework Housing and Siemens helped to bolster the city’s office transactions, take-up in the industrial sector rose 24% year on year and office supply was 20% lower than 2016.
One of the biggest deals in the retail sector was the sale of the Debenhams building in Nottingham’s Old Market Square, a 196,604 sq ft premises that was acquired by Altum Capital for £25.8 million.
We’ve touched upon this last point plenty in this blog, but with definite signs of life in the Grade A development space, that figure could change over the next 18 months – two years.
However, it’s the industrial sector which continues to power the region’s property market. In the industrial sector, says Innes England, take-up rose 24% year on year driven by large acquisitions in the logistics sector from the likes of Kuehne + Nagel and Cync UK. The agency said that replacement supply was often absent and availability continued to tighten with the market now only providing around ten months of supply based on average take-up levels. These market dynamics, according to Innes England, fed through to drive prime rents which rose to £6.25 per sq ft, exceeding the peak recorded in 2008.
The picture for the city remains good, despite the obvious lack of Grade A office space. If you want a piece of Nottingham’s commercial property market action, get in touch for confidential advice.