NOTTINGHAM INDUSTRIAL AND OFFICE MARKET UPDATE

Market Overview News

We are approaching the half way point in 2010 and are already seeing a much different picture from the same period in 2009.  FHP are pleased to report that there has been an increase in activity in both the office and industrial markets.

The level of enquiries received through the FHP website – www.fhp.co.uk – have risen by approximately 20% and viewings have increased by approximately 30%.  In real numbers this translates as FHP carrying out approximately 750 viewings in the first 5 months of the year relative to only 365 in the previous time period in 2008.

The increase in activity has been reflected in the capital value of deals done which were up 70% from the sale period last year with FHP so far recording approximately £30 million in the capital value of deals done.

It is interesting to note that the premises which have been vacant throughout the recession period are now becoming occupied as confidence returns to the market coupled with the ability to acquire buildings on far more competitive terms than were previously achievable.

Of particular note are the number of warehousing/industrial premises over 50,000ft² that have either been let or sold by FHP in the Junction 28 area since the turn of the year.  There have been approximately eight transactions completed, all on second hand buildings in the Junction 28 area.

These premises have been sold or let at competitive market terms incorporating:

• Stepped rentals
• Rent free periods
• Options to purchase

By working with landlords and tenants to understand the views of each party FHP have been able to negotiate these deals to ensure that all parties are happy with the results. 

Perhaps one of the hardest hit areas of the market has been the small office market around Nottingham where values have fallen considerably in light of oversupply and limited demand.  However over recent months demand has returned and the number of transactions has increased to greater than pre recession levels. 

As an example Ash Tree Court at Nottingham Business Park which is a fourteen office courtyard scheme was caught out by the recession with only three or four units occupied.  This was until the last few months which has seen four new tenants arrive at the scheme with one more unit ‘under offer’ and a strong interest in two more.

The increase in activity cannot be attributed to just one factor but it is certain that the market as a whole is more buoyant and now is the time to act if you are thinking of acquiring new premises.