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Office News
Pride Park has long been a popular choice for businesses in Derby since it was developed over 25 years ago, and it quickly has become the premier office location in the City. It continues to be the primary choice for the majority of businesses we speak with today and accommodation on Pride Park typically comprises standalone office buildings, ranging in size from 1,000ft² to those well over 20,000ft². Some of these buildings are now close to 25 years in age and range in appearance and specification, some being refurbished to a modern day standard with raised floors, air conditioning and LED lighting, with others being somewhat dated.
There remains very little available stock on Pride Park and as a result we are ongoingly speaking with a number of established businesses that require offices in this location, some of which have been looking for 12 – 18 months plus. There is clearly good demand at present due to this shortage in supply.
Over the past twelve months, there has been a notable increase in the supply of offices between 1,000 and 3,000ft² but there is a lack of available space over 3,500ft². There have been a couple of larger building brought to market and pleasingly these have been placed under offer quickly. Edward Lloyd House, a detached 9,700ft² office, was placed under offer within one week of it being placed on the market. In addition, a 13,000ft². building on Centro Place has also recently been placed under offer following a short marketing period.
Typical office rents on Pride Park range from £12.50 per ft² for second hand un-refurbished space to £16.50 per ft² for some of the better modern space on Pride Park. Rental levels have largely remained unchanged over the past 10 years albeit we are seeing signs of growth with headline rents hitting £18.00 per ft².
To put this in to perspective, to facilitate a new build office, a rent in the region of £25 per ft² is required (subject to specification). If rental tones continue to rise we hope to see new Grade A offices being built but at present the gap between existing and new is too far apart.
There are several key reasons why Pride Park remains the top choice for office occupiers these include:
Detached HQ Buildings – Many occupiers are specifically seeking detached, self-contained buildings that give them full control over their workspace and branding/ signage. Pride Park offers a selection of high-quality standalone office buildings, which are very attractive compared to multi-let office environments.
Location & Connectivity – Situated just minutes from Derby city centre and with easy access to the A52 and M1, Pride Park offers excellent transport links, making it a great location for regional and national businesses. Derby railway station is also within close proximity, providing easy access to London and other major UK cities.
Excellent Parking Provisions – Unlike many city centre locations where parking is a challenge, Pride Park offers businesses the advantage of ample on-site parking.
Overall, the Derby market is healthy and there are a good number of deals being done and a selection of high quality buildings for business to look at. Rents are still sensible, but with any new build options some time away and supply diminishing, we could see these rents edging up.
For further information please contact Corbin Archer on 07929 716 330 / corbin.archer@fhp.co.uk or Darran Severn on 07917 460 031 / darran@fhp.co.uk.