Commonly known to be a quiet month in the property sector, August has pleasingly been active in the sub-10,000ft² industrial/warehouse sector and we have managed to place properties under offer and complete deals. We have been speaking to a lot of businesses who are looking for a place in the region.  The small sector industrial market has suddenly become extremely busy with companies looking for their first or even next warehouse unit.

Early this month saw the letting of 15.11 Amber Business Centre for a term of 5 years. All industrial/warehouse units at Amber Business Centre, Riddings receive a huge amount of interest with FHP placing four further units under offer ranging from 618ft² to 1,517ft².  Continuing with small industrial deals, two more lettings have completed on Bailey Brook Industrial Estate, Langley Mill to EES London Ltd and Bayliss.

We are also on the verge of completing a freehold deal in Ilkeston comprising 11,942ft² which will be a brilliant result for our client. We only put this property under offer in June so there has been an extremely quick turnaround. Another freehold deal that completed this month was 14 Cotton Brook Road, Derby which reflects the demand in this particular sector. We also have just completed on the letting of 12 & 13 Ecclesbourne Park, Somercotes which comprises 8,650ft². Again, this is a brilliant result for both parties and FHP.

Lastly, to replenish stock, we are shortly bringing to the market two trade counters of circa 5,000ft² in Burton Upon Trent. Details are available soon on our website or by contacting Corbin Archer on 07929 716 330 / corbin.archer@fhp.co.uk.

Harry Gamble of FHP Property Consultants comments:

“August has been a successful month in Derbyshire, and we are just over halfway through! I have completed on a number of deals myself and, alongside my colleagues, we have put several other properties under offer which shows that the market isn’t showing any signs of slowing down sub-5,000ft² – 10,000ft². Rental and freehold values are still remaining strong in this size range and pleasingly rental incentives are remaining at existing levels.”

If you are interested in purchasing or letting any commercial property, then please do not hesitate to contact me on 07398 443 828 / harry.gamble@fhp.co.uk, Darran Severn on 07917 460 031 / darran@fhp.co.uk or Corbin Archer on 07929 716 330 / corbin.archer@fhp.co.uk.

ENDS

August 2024

[Left to right – Tom Wragg, Tim Gilbertson, Alan Pearson, Harry Gamble, Jon Marriott, Darran Severn, Corbin Archer]

The East Midlands’ commercial property market like all sectors of the economy continues to evolve as we face both economic, political and worldwide challenges.  Despite the uncertainty, we are pleasingly seeing good activity within the office, warehouse and retail sectors.  As a result we have been taking on new instructions, building new relationships and are expanding into new areas across Derbyshire and the East/West Midlands.  We have an experienced team in place to service these instructions with capacity to further increase workloads.

The office and industrial agency team deal with sales, lettings and acquisitions of commercial property on a day to day basis across Derbyshire, Staffordshire and the wider Midlands.  The team are currently involved in some exciting schemes along the A50 corridor which include the disposal of three brand new speculatively built industrial and logistics units totalling some 460,000ft² at Dove Valley Park.  In addition, we are working with local developers on their final phase at Dove Valley Park which includes 34 acres of development land for build to suit warehouse opportunities.

In Uttoxeter, we have two speculatively built warehouse units at Dove Way which range in size from 36,000ft² to 110,000ft².  These will be available for occupation in the next few months.  We are also working with a national developer on a site to the west of Uttoxeter which is capable of delivering a unit up to 500,000ft² or a series of smaller units.  Enabling works have commenced and we hope to see a building on site within the next couple of years.

In terms of offices, we are seeking more stock as a result of a successful 12 month period with some 60,000ft² being let or sold by FHP alone across Derbyshire.  A particular highlight being the letting of Waterside Place, a new 35,000ft² office building in Chesterfield, and the letting of some 20,000ft² at Pentagon House, Derby.  Whilst stock levels remain low across Derby, particularly on Pride Park, we are working with a number of clients who own large multi-let offices where we can offer suites up to 20,000ft² plus.

Our retail and leisure agency team are dedicated to all sectors including High Street, shopping centres, retail parks, neighbourhood parades and drive through sites.  The leasing team has been particularly busy working on the Derbion where fashion and lifestyle brand, White Stuff, have secured a 1,501ft² unit.  This announcement comes after £5 million being poured into the development of three new concept stores for JD, New Look and Ann Summers at Derbion.  JD is set to expand its store to a 20,175ft² space by the end of the year, more than doubling its current size.

Derby City Centre saw a fast start to 2024, with a number of High Street lettings completing including 30 St Peters Street and 11 Sadler Gate, as well as a lease renewal to Lloyds Bank.  Generally we have seen increased activity in the market place, with a good number of enquiries for retail and leisure properties throughout the City Centre.  Moving our focus into Derbyshire, we have seen improved demand of late for units within Ashbourne and the town seems revitalised since the opening of Bear Café on St John Street.  The renewed appetite for Ashbourne was clearly demonstrated when FHP brought 5a St John Street to the market and the property was placed under offer within one week of being listed in a deal which will bring an exciting restaurant into the town centre.  In addition we have been instructed on Peak Village Shopping Centre in Rowsley to enhance and attract new retailers which complement the existing tenant mix.

The Professional and Valuation team continue to be busy in all commercial sectors, whether that is for personal/private valuations, secured lending, pension purposes, lease renewals and rent reviews.  We also undertake reinstatement cost assessments for insurance purposes.  We have been covering the East and West Midlands for many years, providing our clients with the best advice from our knowledgeable and experienced team.

Darran Severn, Director at FHP Property Consultants comments:-

“Having worked for FHP for close to ten years now, I feel the Derby team are better placed than ever to service both our existing and new clients across all sectors of the market.  Whilst the bulk of our work is concentrated on Derby and Derbyshire, we are pleasingly extending our instructions along the A38 and A50 corridor into Staffordshire bridging the gap with our other offices in the Midlands in Birmingham and Nottingham.  FHP has always been able to cover the entirety of the Midlands for any commercial property requirement for clients old and new and the link between all three offices gives us that ability to provide joined up thinking across the region for our clients.

We have the capacity within the team to take on further instructions and I would be more than happy to meet with any occupiers, landlords or landowners to discuss any opportunities.”

To discuss any property matter throughout Derbyshire or the wider Midlands region, please contact any member of our team and we would be delighted to assist.

ENDS

July 2024

The first half of 2024 has pleasingly been a busy period for FHP Property Consultants, and we have been involved in several successful schemes across North Derbyshire, particularly between Junctions 29 and 30 of the M1 motorway.

The office agency team have been dealing with a number of good quality enquiries which has led to the letting of 12,000ft² at Holmewood Business Park, Holmewood, a modern office park approximately 4 miles south east of Chesterfield.  The 12,000ft² comprises two lettings, one to Rutland UK who have relocated from Chesterfield, and the second to Harmony Fire who have several offices located across the country.  Both businesses have committed to new 5 year terms and chose this location due to the connectivity to the M1.  We have one remaining office building at Holmewood Business Park comprising 5,267ft², for which we already have strong interest, and we will hopefully be able to declare this “under offer” within the next couple of weeks.  The office team also has 6,000ft² “under offer” in Barlborough, just off Junction 30 which is due to complete any week with terms also out on an additional 12,000ft² office building in this location.

Darran Severn, Director at FHP Property Consultants commented:

“It’s been hard work but pleasing we are seeing some of the deals we agreed earlier in the year completing.  We are finding that enquiry levels are consistent and in some of these locations it’s a matter of unearthing the right occupier for the building.  Quality is key, and many of the businesses we are speaking with are looking for refurbished space that is immediately available for occupation.  Both capital and rental values remain at existing levels, with typical lease lengths being between 5 and 10 years with breaks in year 3.  Whilst there is an element of uncertainty in the air due to political and world events, we do require more stock across Derbyshire to satisfy ongoing requirements.”

The industrial agency team has also been busy working on several schemes in Clay Cross, the first being Wingfield View Business Park, which is being developed by Roe Developments.  Wingfield View Business Park is a new industrial estate comprising 19 units totalling some 60,000ft².  The units range in size from 2,091ft² to 12,062ft² and have been available to purchase or lease.  FHP Property Consultants alongside joint agents are pleased to confirm that all units are now under offer with practical completion imminent.

Darran Severn added:

“This has been an extremely successful development and one which has been a pleasure to work on.  The size of units delivered is exactly what the local market requires, and consequently the majority of these units are going to local businesses.  There has been a continued demand for units up to 10,000ft² particularly on a freehold basis and the flexibility here has been key to getting all units under offer.”

Following the success at Wingfield View Business Park, Roe Developments have started construction on Egstow View Business Park, Clay Cross, which will offer a mix of trade counter and warehouse units.  The scheme should be available for occupation around Q2 2025 and we are pleased to confirm that there are already four units under offer on a leasehold basis including one drive-through unit.

In the general Chesterfield area, we completed the sale of 12,500ft² in Whittington to another local occupier and have let a further 3,000ft² at Spectrum Business Park, just south of the town centre.  Due to the success at Spectrum Business Park, the owners are now looking to deliver further units that will hopefully be available in Q1 2025.

We are seeing that most businesses are being prudent in their business plans, but we are pleasingly finding the majority are still being progressive.  Enquiry levels remain consistent and more importantly units are being placed under offer and deals are completing.

For further information on any of these deals, or to discuss your property requirement/disposal of your property, then please do not hesitate to contact a member of our team.

Darran Severn – telephone 07917 460 031 or email darran@fhp.co.uk

Corbin Archer – telephone 07929 716 330 or email corbin.archer@fhp.co.uk

Harry Gamble – telephone 07798 443 828 or email harry.gamble@fhp.co.uk

ENDS

June 2024

The majority of businesses require an office, whether that’s for one person or five hundred.  Derby has an array of options across both Pride Park and the City Centre, albeit with limited availability of good quality options, businesses cannot always find what they are looking for.

We are currently receiving a continued demand for offices on both a freehold and leasehold basis.  Activity is down slightly from 2023 due to an unprecedented amount of transactions taking place last year with some 60,000ft² being let/sold by FHP alone.  So far in 2024 FHP have concluded five deals in Derbyshire transacting 16,615ft² of office space with a further 12,000ft² currently under offer.  We have also recently sold a prominent building which was an income producing asset on Pride Park which is approximately 32,000ft² to a private investor.

The good news is that we are still busy showing people around office suites and issuing proposals.  What we are finding is that occupiers are taking longer to make decisions.  This could be down to political/economic and world events creating uncertainty or simply because businesses are starting their search much earlier in advance.

Requests from office occupiers in the region remains the same as recent years with businesses seeking to relocate or downsize into better accommodation, with the emphasis being on the quality of an office fitout.  This is due to the increase in hybrid working and the shift in focus to increase productivity and engagement in the workplace whilst maximising the space used as utility costs have increased, and also help attract employees.

Availability in the region for 1,000ft² to 2,000ft² has increased, with more offices becoming available on Pride Park of this size albeit the space is quite bespoke either being available on the first floor, part warehouse or lacking investment and subsequently demand.  There are still few options across the city if an occupier is seeking 5,000ft² or above, particularly on a self-contained basis.

Office business park locations outside of the City Centre in regions such as Castle Donington, Ashby and Alfreton remain popular locations for businesses regional office headquarters as they offer good quality space in a detached building with excellent parking and great transport links with quick access to the region and the wider UK.

Overall, market trends remain similar in 2024 with occupiers looking for good quality space in either multi-let offices or stand-alone buildings.  There has been more availability for smaller offices in the region and freehold office demand remains strong.  Finally, capital values and rents remain at existing levels and in some areas we have seen growth across the last 12 months.

For further information please do not hesitate to contact Corbin Archer on 07929 716 330 / corbin.archer@fhp.co.uk or Darran Severn on 07917 460 031/ darran@fhp.co.uk.

ENDS

April 2024

Pleasingly, despite August being the peak month of school holidays, deals are still being completed and properties are being placed under offer.  Corbin Archer is happy to announce the completion of five deals this month ranging from bar premises on Friar Gate to a former Second World War Army Ordnance Depot industrial unit in West Hallam.

6 Friar Gate, Derby is a newly refurbished fully fitted bar/ restaurant ground floor premises with additional basement storage and first floor office / staff quarters that has been let to a local operator.  It is located on the prominent leisure pitch in the city centre with surrounding occupiers including Bistro Pierre, Friary Derby, Popworld and The Distillery.

Continuing with premises near the city centre, we have let 18 Dunton Close which is located on West Meadows Industrial Estate just under 1 mile from the centre. The property comprises a mid-terraced industrial/warehouse unit and has been let on new lease terms for a period of 5 years to an operator in robot engineering.

Outside of Derby city centre, we have completed on two further small industrial deals, one on Drakelow Business Park, near Burton on Trent and the other on West Hallam Industrial Estate. The rental level breaks down to £4.75ft² and £4.00ft² respectively, showing high demand for affordable industrial units in the region.  Lastly, we have sold off-market a parcel of land in Bulwell for a private client to a neighbouring occupier.

Corbin Archer of FHP Property Consultants comments:

“August has been a very busy month for me, having completed 5 deals and placing a further 8 properties under offer.  At a glance, this shows that the summer holidays have not slowed down the commercial property market as it has remained a very active period.  Occupier demand has been strong on all fronts from a retail and leisure perspective to small industrial units and freehold land.  I wish all the new tenants success in their respective units and I look forward to speaking with more occupiers seeking a commercial property.”

If you are interested in buying or letting a commercial property, please give me a call on 07929 716 330 or email corbin.archer@fhp.co.uk.

ENDS

August 2023

“The high street is dead”.

That’s the kind of comment we all hear often – it’s easy to say and at a glance there seems to be a lot of evidence to support it. We’d argue on a closer inspection it’s not quite the whole truth.  Yes, there are empty retail and leisure properties throughout Derby city centre, even on the traditional prime retail pitches of St Peters Street and East Street.  Yes, rising inflation has killed some decent businesses.  Yes, levels of rent have dropped in many locations too. Yet in 2023 alone FHP have completed lettings to national chains Boo Burger and Pie Minister who will soon be open for business.

It is also true that when you see a vacant shop, there is often more going on behind the scenes than meets the eye.   A deal yet to complete. Landlord works underway.  A business in insolvency yet to hand the property back to the landlord whose hands are tied. Recent footfall figures tend to support our view with many locations nearing pre-pandemic levels.

Derby city centre has changed over recent years from the ever strong Derbion centre taking the limelight from St Peters Street to the Assembly Rooms fire and migration of the leisure pitch towards the Wardwick and Friar Gate.  However a walk down Sadler Gate still takes you past a vibrant collection of largely independent boutique retailers, cafes, bars and restaurants with some interesting new additions popping up.  Derby is also changing in fascinating ways that are likely to bring people, and thus businesses, back.  For one, the Becketwell regeneration scheme that will bring 259 high quality apartments to the city centre under phase 1 which is nearing completion. Refurbishment of the historic Market Hall is well underway and is an exciting prospect.

Derby ranks far higher on the average UK salaries chart than you might expect (by some sources, number one outside London but we have been unable to verify this claim).  There are 2.2 million people within a 45 minute drive.  It seems clear there are people and there is money looking for a reason to come to Derby and Derby is beginning to provide that reason and we are seeing this reflected in the number and quality of enquiries.

Even where the prevailing assumption of a struggling high street does hold true, we are finding there is still demand from local and regional operators looking for good quality premises at an affordable rent ready for them to fit out and trade from quickly.  This climate favours landlords willing to take a pragmatic and flexible approach and particularly those willing to ensure their vacant premises are ready for action.We say: “the high street is dead, long live the high street!”

ENDS

May 2023

The end of February 2023 brought an end to my first six months at FHP Property Consultants. Having almost completed my studies I was immediately employed yet during my first two months of working I had to balance completing my dissertation whilst working full time. Pleasingly, this paid off as I achieved a Distinction in MSc Real Estate at Nottingham Trent University.

The first six months at FHP have gone by very quickly and I have adapted to the full-time work lifestyle, having previously had four years of being a student with unlimited free time!  I have also learnt a lot in this short space of time, using the knowledge I gained from university and applying it to my day-to-day tasks. That being said, I have learnt far more in a shorter space of time working at FHP as I pick up on the experience that others around me have and I have equally benefitted from being out in the field gaining real life experience.

During my time so far, I have completed 6 commercial property deals with a further 10 currently under offer. Every day I am being trusted with more instructions and responsibility as I am now liaising with clients and placing properties on the market. My role at FHP is to deal with the sale, leasing and acquisitions of industrial and office buildings in Derbyshire whilst also assisting on retail and leisure too.

Back when I joined in August 2022, the market conditions were excellent with the industrial sector outperforming over the last couple of years. Looking at the office market there were more enquiries than expected with occupiers looking to downsize but to also improve their overall space. Towards the end of last year, the market saw a dip due to economic pressures with the high inflation rates and political instability, all while battling the ever-developing issue of the war in Ukraine.  Thankfully the dawn of the new year has shown that despite economic uncertainty the property market remains strong, and we are still getting enquiries which are turning into deals.

Overall, I have thoroughly enjoyed my first six months here at FHP Property Consultants and I am looking forward to continuing my career here.

If you are interested in any properties we have please contact me on 07929 716 330 / corbin.archer@fhp.co.uk

ENDS

March 2023

It has been another busy 12 months for the FHP Derby office.   As a result, we are delighted to announce that we have strengthened our team and are now even better placed to service our existing and new clients as instructions continue to grow across the region.

The office and industrial team welcomes Corbin Archer who recently completed his Masters Degree at Nottingham Trent University.  Corbin will work alongside Darran Severn on the sale, leasing and acquisitions of industrial and office buildings throughout the East Midlands.

Darran Severn, Director at FHP Property Consultants commented:

“The office market has been surprisingly active this year and we have pleasingly disposed of some 50,000ft² on Pride Park alone.  A couple of highlights were agreeing the sale of Prospect House, a three storey landmark office building totalling 12,279ft ² which was recently sold to local investors in a multi-million pound deal.  We were also named a Co-Star quarterly deals winner for the letting of Edward Lloyd House, a modern two storey office building comprising 9,700ft². 

We have also had great success within the industrial and logistics sector and have extended our reach along the A38 and A50 corridors.  A key example of this is being instructed by St Modwen Logistics on their Uttoxeter scheme, where we are hoping to deliver some 400,000ft² of warehouse and logistics space over the next couple of years.

The addition of Corbin will reinforce our strength and allow us to grow organically, and push into areas such as Lichfield and Stoke-on-Trent.  The A38 and A50 corridors are proven warehouse and logistics destinations and we are speaking with a number of businesses in these areas who require more space.”

Corbin Archer commented:

“I am excited to join FHP’s office and industrial team.  FHP stood out to me as not only market leaders but also leading ‘talent developers’ as they give their new surveyors autonomy and backing to develop their own relationships with clients.  This is a lot of responsibility, but I have been supported throughout the first couple of weeks and have learnt a lot in such a short space of time.” 

 The retail and leisure team has also been busy reacting to the current challenges in the market.  The past 12 months have been very promising for the Derby retail and leisure market.  Despite the current challenging economic climate, there is a sense of restored confidence within retailers now that the pandemic is behind us.  The recent efforts of the team have resulted in a growing number of instructions within both the city centre and across the region, including towns such as Ashbourne, Alfreton, Belper and Uttoxeter to name a few.  In addition, the ongoing transactional volumes has resulted in the need to expand our team and we are pleased to have appointed Liam Ash to our retail team.  Liam has recently completed a Masters Degree in Real Estate at the Nottingham Trent University.

Liam Ash commented:-

“I am thrilled to have joined the FHP retail team focussing on instructions in Derby and across the region.  Through learning the ropes and exploring the local towns, I have developed a wider understanding and appreciation for the way high streets and neighbourhood shopping centres work across this region.  I have already spoken with many retailers looking for opportunities locally.”

 To further bolster the team, Jamie Gilbertson has joined FHP Property Consultants on his placement year.  Jamie is currently studying for a degree in Real Estate at Sheffield Hallam University and will graduate in September 2024.  Jamie will work alongside both teams covering all sectors of the market.

Jamie Gilbertson commented:-

“I have really enjoyed my first couple of months at FHP and have been involved with retail, industrial and office instructions across the region.  No two days are the same and I value the variety of experience which will put me in good stead for when I return to university to complete my degree.   There is a great support network here and I am excited to learn more as I progress through the year.  I am also delighted to have completed my first few deals!”

 However, FHP don’t just do agency work and offer a wide range of services including valuations, rent reviews, lease renewal negotiations and rating appeals, combining in depth local market knowledge with breadth of experience throughout the firm.

Tim Richardson, Director within Derby office adds:

“It’s been an interesting period, with significant growth in some sectors such as industrial, office occupiers carefully weighing up their options in the light of hybrid working, and evolution within the retail and leisure sector.  We are therefore seeing more clients wishing to update their valuations, whether it be for pension fund, accounts or insurance reinstatement, and also seeking professional advice and representation when it comes to rent reviews or lease renewal negotiations.”

To discuss any property matter throughout Derbyshire or the wider Midlands region, please do contact any of our offices and we would be delighted to assist:-

Derby Office – 01332 343 222

Birmingham Office – 0121 752 5500

Nottingham Office – 0115 950 7577

August 2022

ENDS

Without a doubt, 2021 has been an exceptional year for the industrial sector.

Having joined FHP as a graduate in June 2021, I have already witnessed hand in hand a promising level of demand for industrial stock under 5,000ft² in Derbyshire and the wider East Midlands area. Thus far, I have dealt with a small number of units in Derby and Ilkeston both on a freehold and leasehold basis.  As an example Unit 10b Sawley Park, Nottingham Road, Derby, which comprises 1,219ft² and is currently under offer by way of sale with completion anticipated in January 2022.

It is no secret that landlords are witnessing rental levels increasing across the region due to exceptional demand. Many industrial estates have reached full occupancy in 2021 including the Ropewalk Industrial Estate in Ilkeston, Prime Industrial Park in Derby and Amber Business Centre in Alfreton, which is a fantastic achievement for all involved.

Nevertheless, I am continuing to take enquiries from numerous occupiers despite stock being somewhat limited, including those within distribution, furniture manufacturing, vehicle storage, and transport/logistics. More often than not, I have seen many occupiers showing flexibility with their requirements in terms of size, rent/price, location, and unit specification, with some perhaps willing to wait a number of months or pay considerably more for the right property. This clearly shows how strong the market is and I anticipate that this will continue well into the new year.

That said, in my experience to date I have noticed more and more occupiers are being attentive of their specific needs, including quality security measures, yard space and parking. Unfortunately finding a property that meets all the above requirements are becoming more difficult to find, but FHP are working with numerous clients who can deliver a range of suitable options including build-to-suit and new build units in 2022/23.

With regards to current availability, there are some units available to let on new lease terms in Derby, Ilkeston and Swadlincote. For example, Unit 4 & 5 Eagle Road in Ilkeston comprises of 2,262ft² of warehouse space with a shared yard area, and Unit 9 Viking Business Centre in Swadlincote comprises 1,360ft² clear span warehouse accommodation on a popular estate. Both options are immediately available by way of a new lease.

Should you be looking to discuss your property requirements for 2022, whether you are interested in a property that we are currently marketing or perhaps there may be something else suitable in the near future, please feel free to contact me in the first instance on 07929 716 330 or dan.mooney@fhp.co.uk.

ENDS

Dan Mooney

January 2022

The last 12 months have somewhat flown by and it doesn’t seem that long since I was sat at my desk back in January 2021, albeit my desk at home and not in the office.  Pleasingly 2021 turned out to be a better year than initially expected.  The industrial/warehouse sector has been particularly buoyant, and we have also seen good activity in the office market.  As a result, deal activity has remained very consistent throughout the year.

We started 2021 with a good level of industrial/warehouse units available on both a leasehold and freehold basis.  It was clear within the first 3 months of the year that demand was simply going to outweigh supply creating a shortage of units across all size ranges.  This trend certainly continued throughout the year, and I found myself speaking with many more businesses who are struggling to source premises.  In fact, enquiry levels overall were high, and it was often the case that we received multiple offers on properties.  In addition, I found businesses were having to widen their search area due to a lack of options and we were picking up enquiries further down the A38 in Burton on Trent and Lichfield and across the A50 to Stoke on Trent.

Deal activity in the office market has been positive and we did see an encouraging number of transactions take place throughout the year.  Typical requirements tend to be between 1,000ft² and 6,000ft² with a couple of exceptions around 10,000ft².

Many of the businesses I have spoken with are planning a return back to the office if they haven’t already and I get the impression that working from home has its place, but there is no replacement for face to face interaction.  What I have noticed is that occupiers are looking for higher quality offices that offer a mixture of traditional desk space but also offer creative collaboratives zones and breakout space.

To conclude a busy year, I also completed several deals within the investment sector.  Typically, these have been single let industrial or office buildings returning yields between 6% and 8%. More pleasingly, we exchanged contracts on approximately 35,000ft² of city centre retail space in December which should complete in January 2022.

I am pleased to say that the FHP Derby office has performed well this year and this is the second year in a row that we have strengthened our team and we are now better placed than ever to service our existing and new clients as instructions continue to grow across the region.

As we look forward to 2022, the general sentiment remains the same and there simply isn’t enough space.  We need more industrial/warehouse stock of all sizes to satisfy current demand whilst we await new build schemes that are looking to be delivered in the next 6 – 12 months.  In terms of the office market, I envisage increased activity as more and more businesses return to the office, albeit this is likely to be later in the year.

ENDS

Darran Severn

January 2022

FHP’s Office Team continues to see an improvement in enquiry levels, with a marked increase in office occupiers considering their future office requirements as restrictions ease.

Office enquiries in the last 3 months 2021 are up 70% when compared to the final quarter of 2020 with a number of notable occupiers now seeking to change their office space to fit with their individual working practices as a result of the Coronavirus Pandemic.

Mark Tomlinson, Director of FHP Property Consultants commented:-

“It is encouraging to see these improved enquiry levels in the office market, we anticipate that these enquiry levels will improve further as restrictions ease and occupiers have a better understanding on how they wish to use their offices going forwards.  There has been a lot of speculation that office occupiers will seek to downsize and whilst this is true in certain circumstances, we have also seen a number of occupiers seeking better quality spaces and actually larger footprints to support increased collaboration and improve facilities to boost employee wellbeing”.

2020 was undoubtedly the year when everyone’s lives changed substantially and the face of the commercial property market changed too.  Whilst fearing the worst, it saw unprecedented levels of demand and a limited supply which seemed to go against all experts’ expectations.

Surely as we entered 2021 this trend couldn’t continue?

Reflecting back on early 2021 now, there is no doubt it was challenging but not in the way we were all quite expecting. One year on from the outset of the pandemic, and FHP’s in-house statistics show the Office and Industrial team are on track for a record year!

We have been extremely busy in Q1 2021 speaking with multiple parties still interested in taking on new space. Whether Covid-19 has given them the push to start a new business venture, or that their business has continued to thrive and consequently they were seeking space for expansion, people were still enquiring, and deals were still being done.

Throughout January to March 2021, we received the highest numbers of weekly and monthly enquiries in the industrial and distribution sector we have ever seen, resulting in record numbers of viewings and indeed deals. March was a particularly active month; our data is reflecting a 138% increase in enquiries compared against the average for March over the last 4 years. Perhaps this is down to the positivity of the current vaccination rollout or the excitement of lockdown coming to an end – whichever it may be, there is certainly some regained confidence in the future of businesses.

In the office sector as well, we are now seeing real signs of revitalisation in the market – have we all become tired of working from home?  Certainly, that seems to be the case and space is moving and enquiries are increasing week by week.  It seems likely that this trend will continue as well.

Therefore, whether you are looking to sell or rent your property or are seeking a new premise for your business, we are encouraging all parties to strike whilst the iron is hot and make your property move. FHP remain here to help, and we would be delighted to assist with any commercial property matter.

Please contact the FHP Team at any of our offices in Nottingham (0115 9507577), Derby (01332 343222) or Birmingham (0121 7525500).

ENDS

Estée Coulthard-Boardman

10 May 2021

Whilst always focused on ‘doing the deal’ and letting, selling and acquiring industrial and distribution space throughout the East Midlands, we constantly monitor the local market to try and keep on top of market trends from quarter to quarter and indeed year to year.

Even in the bizarre year of 2020 we received some of the highest numbers of weekly and monthly enquiries we had ever seen, generating record numbers of viewings and indeed deals.

Looking back on the year now, 2020 was very busy!

Manufacturing and distribution sectors and specialities across the board created demand, but in particular, we found ourselves constantly engaging with a huge range of occupiers across a broad spectrum of business sectors.  Restructuring was certainly on the minds of many occupiers but equally expansion plans were prevalent and whilst it would be wrong to ignore those companies downsizing, we found that the vast majority of enquiries were from companies looking to take on more space not reduce their gross floor area.

The year was capped off in December 2020 when we encountered more enquiries than we had ever had in that month since our records began.  As frivolous as it seems, we put this down to a lack of holidays, business parties and Christmas celebrations as we all seem to be working harder and longer than ever which saw a terrifically busy if frantic end to the year with success achieved across the board.

All size ranges in the market in the East Midlands seem to be strengthening still, probably the star performers are those units of less than 10,000ft² where supply is virtually non-existent and demand is strong; as soon as we put a property on the market in that sector it seems to be let or sold within days.

This strength is mirrored through so many size ranges and whilst we found ourselves still in the midst of a pandemic with limited information as to when it may end, our market continues to remain strong and demand outstrips supply leading to us regularly searching and asking clients for more space to market to meet the ongoing demand encountered.

Is this the new normal?  Who knows is the answer, but what can be guaranteed at the moment is that we are working as hard as ever to find and let/sell space to a market which seems set fair for another positive and productive year despite the ways of the world and the conditions we are all having to endure.

FHP remain here to help and we would be delighted to discuss how we can assist clients old and new with the marketing of their surplus space or indeed try and help tenants and purchasers alike to find their new building and continue the economic positivity we have found throughout 2020 and early 2021.

Please contact the FHP Team at any of our offices in Nottingham (0115 9507577), Derby (01332 343222) or Birmingham (0121 7525500).

I believe that there are many reasons to be optimistic about the future of office buildings and the office market generally as we come out of lockdown in a “post Coronavirus” world.

For many the newfound ability for staff to work from home has meant that we are seeing a number of occupiers reassess what it is they want from their office going forwards. The rush to get into the office before 9:00 am to not leaving the office until dark, especially over the winter months, is not something that many office-based workers are necessarily going to miss. But is there something else which many office workers are now missing? Has the initial novelty worn off?

At the start of the pandemic many companies undertook surveys of their staff as to how they wished to work going forwards, the overwhelming consensus among many organisations was that staff wanted to work from home, or go to the office a couple of times a week. Nearly a year on from the initial lockdown, the weeks of blissful weather over the summer of 2020 that followed, many of us are well and truly fed up of sitting in an office at home, attending back to back Zoom and Teams meetings until dark. More recent surveys suggest that an increasing number of us want to go back to the office 3 or 4 days a week, but with increased flexibility without the morning and evening rush.

As the latest lockdown restrictions are eased the role of the office going forwards will become increasingly important, not only to productivity but also to people’s mental health – something which has been highlighted by recent studies suggesting that almost one in five adults were likely to be experiencing depression in late 2020, double that of pre pandemic levels.

Going forwards no longer will there be a distinction between “working from home” and “being in the office”, there will be a more flexible and balanced outlook across a range of workplace settings. The role of the office will change, but I believe it will be equally as important as it was before for the following reasons:

Collaboration – The office will continue to be very important for collaboration of teams.  Remote conferencing facilities, such as Microsoft Teams and Zoom, can only go so far in bringing a team together.  Overheard conversations and the bits of information you pick up from walking around the office are lost in the current “working from home” environment and we are seeing many companies looking to bring teams back together to boost this collaboration.

The office is a socialisation hub – I think many of us are missing the social interaction of the workplace, it breaks up the day and a few laughs throughout the day are good for our spirits, a massive factor when considering our mental health.

Upskilling members of the team – I know from my own experience that I have learnt more from listening to colleagues and asking quick questions of colleagues within the office than I have from any form of structured training.  The role of the office should not be underestimated in the everyday upskilling of members of the team.

Staff Recruitment and New Clients – The office has a role in attracting new talent and bringing new clients in.  The presentation and attractiveness of a workplace environment plays a role in attracting good quality new talent to businesses, especially in the tech sector where sourcing talent can be so challenging.

Productivity – Getting through your emails and filing those reports in quick time has been an advantage of having no distractions in your home office, but it’s not necessarily ‘productivity’. Sharing of ideas and cross selling has a huge impact on overall productivity, and these things are far more challenging when working from home.

The property industry has a role in adapting the office offering to changing occupier requirements.  Already we have seen companies change their outlook and move towards reducing fixed desking and increasing collaboration areas with a view to having a more flexible “work from anywhere” approach.

The importance of the office has not diminished but perhaps the reason and purpose of the office has changed. It has now become increasingly important for occupiers to provide the best possible working environment for their staff, to encourage them back to the office but also make the office a place people want to be.

We are expecting to see a lot of activity in the market over the next 12-24 months while this re-assessment takes place.  There will be increased scrutiny by occupiers on lease events in considering whether to renew or relocate.  I suspect we will see an increase in those choosing to relocate for a variety of reasons to meet the changing operational requirements of each business.

It remains to be seen which subsectors of the office market will be the winners and losers in this changing perspective, for example we may see increasing preference for self-contained buildings where the occupier has better control over social distancing protocols, alternatively highly collaborative shared environments may be the preferred choice – only time will tell.

If you do wish to discuss your office strategy, then FHP would be delighted to help.  Similarly, if you are a landlord considering how best to approach your marketing strategy in this changing environment then we would be pleased to hear from you.

Mark Tomlinson, Director within the Office Agency Team at FHP Property Consultants.

ENDS

Mark Tomlinson

DD: 07917 576 254

February 2021

In what has been a challenging year for everyone, the expectation was that people’s thoughts for new commercial property would be low on their list of priorities. However, FHP’s in-house statistics have been incredibly positive and has proven that this has not been the case, experiencing strong commercial property demand throughout the last several months.

To keep the economy going it is key to ensure the health and welfare of the business market for generations to come.  Therefore, we wanted to bring a little sunshine and optimism to employers and employees alike by highlighting how certain sectors of the commercial property market have been resilient throughout Covid-19 and how we continue to see businesses grow and, in some cases, even flourish.

The effects of the first lockdown at the end of March and early April had a huge impact on everyone, however the market has bounced back strongly and we saw more enquiries over the months of July and August than we had in the previous three years at similar times.  These also translated into more viewings over the same period than in previous years and those enquiries and viewings are now translating into “done deals” which is great to report.

The summer increase in enquiries has continued throughout the remainder of 2020 and ultimately this has led to us having a strong year in the Industrial and Office Agency Team, surpassing expectations when the world seemed in a dire position in early 2020.

No business can rest on its laurels and forecasting for the future is incredibly difficult, but certainly the market sentiment remains the same now as it has done throughout the last few years, strong demand for freehold and leasehold opportunities across all sizes of the industrial and distribution market, with signs of increased activity across the office sector too.

Therefore, our message to clients old and new, landlords and property owners remains the same as it has been for the last few years, demand is outstripping supply and as a result we continue to see rental and capital growth in the vast majority of sectors certainly geographically throughout our region and hopefully, despite everyone’s ongoing fears over Covid-19, we can look forward to 2021 with a little more optimism.

For further information on how the FHP Team can help you on any commercial property matter please give us a call on 0115 9507577.

FHP Property Consultants are pleased to announce that Emily Burgwin and Anthony Barrowcliffe have passed their Assessment of Professional Competence and are now professionally qualified Chartered Surveyors.

Emily joined FHP in 2017 and graduated from Nottingham Trent University with a Distinction in MSc Real Estate.  Emily works within the Professional Services team at FHP giving bespoke advice on business rates and landlord and tenant matters.  Commenting on her new qualification Emily said:

“I am really pleased that all my hard work over the last few years has been recognised and that I now have the recognition and status of Chartered Surveyor. I would like to thank everyone at FHP for their continued support.”

Anthony joined FHP in 2017 working with the Office and Industrial agency team at FHP.  Commenting on his new qualification Anthony said:

“I am very pleased with this achievement and that I can now call myself a Chartered Surveyor.  It has entailed a lot of work and dedication and I look forward to the challenges ahead throughout my career”. 

Sian Cawthorne who oversees the APC candidates at FHP said:

“This is a true testament to the hard work Emily and Anthony have put in throughout the year and is brilliant news.”

Emily and Anthony join a number of their colleagues to achieve MRICS status in the last 12 months including Jack Shakespeare, Chris Kenealy, Chris Proctor and Mairead Gethings.

For further information or if you would like to speak to FHP about how we may be able to help you with any commercial property matters, please contact us on 0115 9507577.

Congratulations is in order to our agency teams here at FHP.  We have been crowned East Midlands Most Active Agents for the third year running by Estates Gazette for 2019.  The EG Deals Competition reviews the number of deals across Office, Industrial, Retail, Leisure and Investment with FHP Property Consultants completing more deals in the East Midlands than any other agent to secure this title.

Mark Tomlinson, Director at FHP Property Consultants commented:

“In a year dogged by Brexit negotiations and parliamentary turmoil, the East Midlands market performed well with some notable deals taking place. We have already seen increased activity in 2020 with renewed optimism and positive market sentiment.”

David Hargreaves, founding director at FHP Property Consultants commented:

“Estates Gazette has mentioned in particular our Retail & Leisure Team, which in 2019 completed 120 deals in a sector that is apparently ‘dead’.  A great effort under difficult circumstances and a testament to FHP’s proactive approach and robust team covering all sizes of instructions across all sectors of the East and West Midlands”.

We have experienced a number of exceptional stand out deals across all sectors in 2019 by FHP property Consultants with a select few listed below.

• Office – 250,000ft² Grade A, new build office pre-let to HMRC at Unity Square, Nottingham, dealt with by John Proctor.

• Industrial – 72,000ft² letting at Castlewood Business Park of the new speculative CW72 unit, dealt with by Tim Gilbertson.

• Retail – Hugo Boss letting at Intu Derby a new 2,600ft² anchor tenant store, secured by Alan Pearson.

• Leisure – Olivia’s Townhouse took the former Fat Cats premises at Chapel Bar, Nottingham which was over 8,000ft² of leisure space, brokered by Oliver Marshall and David Hargreaves.

• Investment – Evo Park, Sherwood Business Park J27 sold on behalf Bauland Properties for £7.5 million. The hybrid style office and industrial park totalling 110,000ft² with a mixed tenant profile was sold in late 2019 by Mark Tomlinson.

For further information, please contact FHP Property Consultants today on 0115 950 7577 or mail@fhp.co.uk.

2019 has been a year of ups and downs, uncertainty and bumps in the road created by Parliament and the political manoeuvring, but nonetheless the commercial property scene in Derby has on the whole remained resilient with good quality well located premises as ever fairing well.

Whilst undoubtedly some businesses have sat still, waiting and waiting for the uncertainty around Brexit to clear, there has still been a large proportion who have been less effected and have had the confidence to continue with their business plans.

The industrial sector has been constrained by a lack of availability of second hand space which has held the upward pressure on rental and capital values and whilst there has been a steady turnover during 2019, we anticipate that the New Year will bring renewed confidence and therefore activity in this sector.  New build developments have gathered pace and in particular FHP Property Consultants are handling two development schemes which will provide available buildings in 2020.

Crown Park Industrial Estate is situated off the ring road in the west side of the City Centre and comprises 6 units from 2,500ft² to 7,700ft² or larger in combination.  Construction is well underway with external cladding in place and completion due at the end of February.  Units are available for sale or to let and we already have two placed under offer, one of which is to a national trade counter operator.

At Victory Park in Sinfin, our clients Revelan have obtained planning permission for three detached new build industrial/warehouse units and are starting on-site with completion of the buildings in mid 2020.  One of these has been forward sold, and there is good interest in the other two which extend to approximately 12,500ft² and 28,300ft², again available either to buy or to lease.

Tim Richardson from FHP Property Consultants comments: “We are really pleased to see these new build schemes come out of the ground and help satisfy local demand from established Derby businesses.  The City has a wealth of engineering and high tech businesses, many of whom keep under the radar when it comes to publicity, but together make the foundation of our local economy.  Companies such as these prefer to buy their business premises where possible and we expect this trend to continue”.

The office market has seen some steady take-up of space, although not without difficulty in some areas.  Pride Park has been particularly challenging, caused directly by the roadworks and road closures which temporarily added considerably to traffic congestion.  However, once the works are completed in 2020 then this situation should improve dramatically and with the end in sight letting prospects are looking far better.

Few will have failed to spot the changes at the landmark Cardinal Square, which has lost its blue as part of the rebranding to a crisp grey and red.  The last 12 months have seen lettings of three floors, plus several suites within the serviced business centre and through the hard work of joint letting agents FHP Property Consultants and Rigby & Co, the occupancy rate of the 113,000 sq ft building has increased from 52% to 72%.  Tim Richardson from FHP comments:

“I believe we have seen a sea change at Cardinal Square.  The extensive refurbishment has completely changed the nature of the building and we now have effectively new reception and common areas, fully refurbished floors with air conditioning and led lighting and a coffee/breakout area.  Further works are expected in 2020 including revamped courtyard garden and an upgrade to cycle facilities”.

Pentagon House is a landmark building close to the Pentagon Island providing Grade A space, again refurbished with new air conditioning and lighting, superfast broadband and excellent parking provision and only has one suite remaining available of 3,700ft² before being fully let.  Derby is the Centre of Excellence for railway and engineering and the RTC Business Park comprises some 400,000ft² of space with some high profile occupiers including Network Rail, Loram, Serco, Sperry and Atkins.  We expect refurbishment to commence on the final remaining building, Brunel House, in 2020 which will provide up to 16,000ft² of accommodation at the front of the park within walking distance of the railway station.  FHP are joint letting agents on both of these schemes.

Perhaps the most exciting development to come out of the ground in 2020 will be Number One Cathedral Green, a long awaited Grade A office building in the heart of the City Centre by Wilson Bowden Developments and which will provide some 42,000ft² of much needed City Centre space.  Tim Richardson adds:

“With the lack of new build office development in the City Centre for many years, this development will fill a gap in the market and we expect businesses currently located on the periphery and including Pride Park will welcome the opportunity to occupy the type of space that reflects their business, right in the heart of the City centre”.

Rents and capital values have held firm during the year and with uncertainty removed, 2020 could be very busy indeed.

To receive our latest bulletin on properties in the Derby area or to discuss your property or requirements, forthcoming rent review, lease renewal, rating issue or valuation need then please contact in the first instance Tim Richardson at FHP Property Consultants on 01332 343 222 or timr@fhp.co.uk.

Opportunities, softer Brexit, shift in policy agenda, and extraordinary; these are all words which have been in the headlines over the last few days.  Whilst it is indeed a completely self-inflicted shambles by the government, the market keeps moving, the phones keep ringing and the local economy has not changed overnight.  Fundamentally we still have good requirements in the market and a shortage of stock in both the commercial and residential sectors.  Brexit negotiations are imminent and a softer stance would be welcomed by many in business, particularly in a City such as Derby with a high level of exports.

These are still exciting times in Derby.  Substantial development opportunities are coming forward such as Becket Well, Assembly Rooms, DRI, North Riverside.  The retail and leisure sector is going strong, with Intu attracting brands such as Carluccios, Cath Kidston, Goldsmiths, Hollywood Bowl and Paradise Island Adventure Golf opening in the Centre.  The revival of St Peter’s Quarter continues helped by the City Council committing to public realm improvements, with the aid of funds from the D2N2 Local Enterprise Partnership.  No doubt this will have assisted in the decision of TK Maxx to return to the City Centre, committing to 22,000ft² on Albion Street.

The popularity of the Connect Derby incubator scheme and serviced offices is testament to the entrepreneurship and creativity within the City and the challenge going forward is having suitable space to accommodate these growing businesses.  With Pride Park office stock effectively full and an acute shortage of any grade A stock at all in the City Centre, new build or high quality refurbishment will be essential to the ongoing prosperity of the City.  Everybody has heard of Rolls-Royce, Toyota and Bombardier, but every week I deal with some of the many businesses on industrial estates and business parks around Derby doing cutting edge work ranging from making aerofoils for Formula 1 cars, to software for train systems to testing the latest power generation prototypes.  It is this wealth of talent that helps keep the local industrial and office market moving and they seek top quality buildings, which are increasingly in short supply.  In the past we have seen some of these businesses migrate to outlying towns along the M1 or A38 corridors, so the City needs to continue its focus on retaining such companies.

As for FHP we have been awarded the 2017 accolade of Most Active Agents for Derbyshire, by the industry leading journal Estates Gazette, having completed more deals in Derbyshire than any other commercial property agency.  To add to the collection, FHP Property Consultants also picked up the Nottinghamshire title for a win win across the region.

For further information please contact Tim Richardson at FHP Property Consultants on 01332 224 857 or timr@fhp.co.uk.

FHP Property Consultants have produced their latest Delivering in Derby booklet providing a range of information on services, achievements for both FHP and Derby over the last few months and is available to download below.

2016 has started strongly for the team with good quality office and industrial buildings letting quickly.  The freehold market is particularly strong with an acute shortage of properties and we have several client requirements for space.  The City Centre continues to see a resurgence, particularly in the Cathedral Quarter with lettings to both retail and leisure operators including most recently Dr Martens taking space on Sadler Gate.  We expect to make further announcements soon.

The Derby office is also able to offer expert rating advice from Kate Cholerton who has many years experience in the rating sector.  She is well positioned to advise on rating assessments which will be released later in the year for the new 2017 Rating Revaluation.

As ever if you would like any assistance then please pick up the phone to one of the team on 01332 343 222 or email timr@fhp.co.uk

The commercial property market throughout Leicestershire undoubtedly strengthened again in the firstly two quarters of 2015.  Across the board, almost regardless of size, demand for industrial or warehouse space to rent or buy increases week on week.  Mirroring this, in the office sector, deals continue to be done primarily with leasehold disposals and again, with demand rising both rents and capital values are very much continuing their upward spiral.

The biggest problem facing potential occupiers in both the office and industrial/ warehouse sectors throughout both City and County is the lack of supply.  Stock is being ‘snapped up’ quickly with demand showing no sign of diminishing even as we move towards the holiday period.

Near record values are being achieved on mid-range industrial space, and across all sectors values are now back to, and in many cases exceeding, pre-recession levels.

Will the situation continue?  In the short term the answer appears to be ‘yes’ as developers in general refrain from speculative development and therefore the market for existing space, be it office or industrial/distribution use seems likely to continue its upward trend throughout the second half of 2015 with prices and rents likely to kick on once more.

If you are thinking of disposing of your premises, or if a fresh approach is needed to marketing your building, then please give me a call as we would be delighted to assist.

The industrial and distribution market around Junction 28 of the M1 Motorway has seen a flurry of activity over the last 6 months leading to near full occupancy on some estates and increases in rents which are now close to pre-recession levels.  Depending upon the size, position and specification of the properties we have typically seen rents rise in the order of 20-25% from mid recession levels, but in some instances significantly more depending upon particular circumstances.

FHP Property Consultants have transacted an average of 2 sales or lettings per month over the last 12 months with premises ranging from 600ft² to 150,000ft².  By way of example, we have agreed 10 lettings at The Amber Business Centre.  The Ecclesbourne Park Estate has been fully occupied since February although one unit of 4,500ft² has recently become available to let, with 4 viewings undertaken within the first week.  Demand for larger units is also strong with several active requirements for premises in excess of 30,000ft².

Tim Richardson from FHP comments:

“Junction 28 and the surrounding area including Alfreton, Somercotes, Huthwaite and the Ashfields is a popular logistics and industrial location.  The recent acquisitions by Co-op, Parker Knoll, UDG, Bombardier, Meridian Lightweight Technologies and Midland Aerospace at Castlewood Business Park totalling over 1,000,000ft² at the motorway junction reinforce this status as a prime manufacturing and distribution location”.

Activity hasn’t been confined to the industrial sector though, with FHP agreeing 3 office transactions, latterly with terms being agreed for a letting of a modern office building at Key Point in Alfreton within a week of being placed on the market.

With new proposed development focussed on larger units there is little prospect of development of new units at the smaller end of the spectrum.  This shortage of supply is leading to an upward pressure on both rents and capital values and the price differential between good second hand buildings and new build is closing.

Tim Gilbertson of FHP adds “With an ongoing shortage of buildings on the market and continued demand this is a good time to achieve a successful sale or letting.  FHP cover the Junction 28 market from both their Derby and Nottingham offices ensuring a combined and co-ordinated approach.”

Perhaps before long we will be able to report that values have indeed finally reached or even exceeded their pre-recession levels.

End

May 2015

Contact:

Tim Richardson

FHP Property Consultants

01332 343222

timr@fhp.co.uk

The release of the Derby City Centre Master Plan 2030 for consultation this month reminded me that at the bottom of a desk drawer I would find previous versions of similar plans.  After a short rummage out came a publication entitled Derbyscope, Urban Design options for the City of Derby.  Given the scepticism in some quarters about the effectiveness of such masterplanning exercises I thought it would be interesting to see how an old one fared.  Remarkably, there is no date on it anywhere but it appears to date from 1992, and sits alongside a document on the Derby Promenade, being the pedestrianisation of the City Centre, with the official ‘P-Day’ ie closing of St Peters Street, Cornmarket etc to traffic on 16^th August 1992.

Derbyscope identified 2 areas of specific need.  Firstly a requirement to offer more retail space to satisfy demand from national retailers, and secondly to increase central car parking capacity alongside improved public transport.  The development of the Westfield Centre (now Intu) has clearly addressed these issues and the need has swung distinctly the other way with there being an oversupply of retail space and more than enough car parking.  The approach of the 2015 and 1992 documents is also quite marked.  As well as identifying developments site, the Derbyscope Document quite specifically identified uses for those sites and provided artistic impressions for them.

By contrast, the 2015 document whilst also identifying sites is less specific about end uses and appears to be much more market led, acknowledging that the private sector will be the key to unlocking the potential of these sites and opportunities.  It feels more like an investment prospectus that can be used as a reference point as well as providing a basic framework to encourage a collaboration between stakeholders.  The document contains an array of opportunities to those wishing to invest here, some viable, some less so without pubic intervention and funding.  The plan recognises that the City needs to readdress the balance and we need offices, City living and cultural facilities to bring vibrancy and sustainability back to the centre, and we need them in the heart of the City.

So how about the success of the early ‘90s plan?  Well, some of the sites have indeed been redeveloped albeit not exactly as envisaged, including Sadlergate Bridge, The Cockpitt & bus station (Riverlights), Main Centre (now part of Intu) and Castle Boulevard.

And of course Duckworth Square which Derbyscope said as presenting “a rare opportunity for a prestigious leisure complex right in the City Centre.  Seen here as an ice rink it would justify challenging design treatment. A major architectural showpiece would put Derby on the design and leisure map, attracting tourists as well as local residents”.  Actually, the pavilion style design looks pretty good. Maybe one day it might just happen…..

If anyone would like a copy of Derbyscope then please let me know. Contact Tim Richardson on 01332 224 857 or timr@fhp.co.uk

Some would describe 2012 as the golden year with the Olympic and Paralympic games being held in London and the Queens Jubilee Celebrations. As with any sporting event there are the winners and losers and this analogy can be related to the property markets. Within the retail sector of the market, some parts of Derby City Centre have performed much better than others. The Derby retail study which was carried out by FHP in the Autumn of 2012 identified 790 shops in Derby City of which 90 were vacant with 16 occupied but available. This equated to an overall availability rate for Derby City Centre of 13.42% which was a small improvement on the 2011 study when the availability rate was 14.66%.

However in terms the overall retail market nationally the effect of online shopping has contributed to and continues to impact upon the High Street. Many national retailers have reduced branch numbers and concentrated into the top 150 – 200 locations at the expense of the smaller town and suburban centres.

Secondary retail locations are suffering more than the prime shopping pitches although there are pockets of success such as Sadler Gate where the vacancy rate is the lowest it has been for some time.  FHP have secured a number of new lettings in this niche retail location during the last 12 months and out of the 50 shops on this street there are just 5 vacancies of which 3 of these are incorporated within the Old Bell which has recently been sold and is due for renovation. This is most encouraging compared to 2010 -2011 when there was in excess of 10 retail vacancies.

In our view the Derby retail market is ‘holding its own’ in comparison to other cities across the UK. In 2012 we saw a steady amount of enquiries from national, regional and independent operators and this is evident as the vacancy rate was reduced by comparison with the year before which is encouraging. Derby is now a shopping destination in its own right as seen by new retailers into the Derby market such as Co-op Travel (Mid-counties), Ask Italian and Luvya Babes. Whilst the retail market is currently experiencing fluctuations as a whole Derby is by no means on its own and as seen by the lower availability rate is ploughing on regardless through these difficult times. The new retail study is due to come out in early spring and it will be interesting to see how the city performs year on year. 

As an agent you have to react with the market to make sure the dealings are dealt with efficiently to meet deadlines within the market place in order to be successful and beat off competition. Two weeks before the Christmas period a property investment was sold on Sadler Gate of which from the point of instructing solicitors the transaction had to be completed within two weeks and I am delighted to say we were successful.

In another scenario Stancliffe Stone had an office property requirement for 3-4,000 sq. ft. We knew there was lots of competing stock in the market place any by having a good working relationship with Clowes Developments (UK) Limited this allowed us to quote terms and agree on a deal before competing agents could even raise a proposal. This led to the letting of Units 1 and 2 Key Point in Alfreton totalling 3,875ft². This deal relied heavily upon having a good relationship with the landlord whereby they could provide us with immediate answers to structure the deal and react to the market.

Looking forward to the rest of this year, whilst we have seen some high profile casualties recently such as Comet, HMV and Jessops, I do believe that the Derby retail market will remain resilient in the face of adversity. The office and industrial sectors are likely to remain challenging, however with appropriate marketing and pricing deals can be done.

In March 2012 I wrote an article called ‘A Polished Pearl Waiting to be Discovered in Nottingham City Centre’ and I am pleased to say that in less than 8 months since this article we have managed to fill the building.  All four vacant floors are now let to three tenants.

I would like to say that this is purely down to good agency work and I would be lying if I did not say the team at FHP worked hard on this.  I would however, not be giving the property and clients themselves enough credit.  

It has been the quality of space and presentation of the building that has enticed the occupiers.  Some of them initially needed persuading to view having previously seen the space years before in an unrefurbished condition, but once in the offices sold themselves.   

The first letting was on the Seventh Floor to Turner Townsend who were relocating from Lock House in the City Centre.  This was quickly followed by The Press Association and then more recently Direct Health, both of whom have moved into the building from period buildings. 

It would have been easy for the landlords, Development Securities, to have listened to the bad press surrounding the office market, looked at the results on their other office schemes and taken a conservative approach to the space.  If they had done I am sure we would not have secured these lettings.  Thankfully they did not and instead embarked on a first class transformation which is hard not to be impressed by.  The reception and offices have been transformed leaving a positive lasting impression on people viewing the space.  

The Pearl is not the only beacon on light that we can report on within the office market in the Lace Market.  With good quality space starting to run at a premium within Nottingham we have seen this success story repeated elsewhere in the City.     

We have had overwhelming success on Broadway, a former Mill building that we are marketing for local landlords Spenbeck. 

We met with Spenbeck in March 2012.  Our advice was that they had two options for this building.  Firstly effectively leave the building as is and mothball it, or secondly, do a top class refurbishment and give yourselves the best chance of letting the space. 

Again, thankfully they listened and 8 months later we have let six suites in the building to four different tenants and are now embarking on a second phase of refurbishment elsewhere within the period building.  This success has excelled our expectation.   

All the tenants that have been attracted to the building are existing Lace Market or surrounding occupiers who currently occupy serviced offices and want to make the step up in terms quality space.  

The feedback has been that Broadway is comfortably standing apart from the competition at the moment due to its high class sympathetic refurbishment that marketing modern day offices need with the period features of the building. 

James Hartley, who is dealing with both The Pearl and Broadway commented as follows: 

“The East Midlands office market is at a tipping point at the moment as much of the high quality stock has slowly been occupied over the last few years.  With little or no new development on the immediate horizon there is becoming a severe shortage of well presented high quality space. 

Occupiers that are moving are tending to look for quality or an upgrade in the quality of space whilst capitalising on the current market conditions to not increase or minimise the income in rent paid on their new space.  

This means that in order for landlords to maximise performance of their offices a refurbishment in many cases is a must.  This work should also be carried out if possible when bringing the space to the market as it is not always easy for potential tenants to visualise finished space so they will often opt for an office that is finished and ready to go.”  

Presentation is everything – don’t give a potential occupier a reason to look elsewhere!  

There are times when commercial property begins to resemble a scene out of Groundhog Day. You wake up, scan the property press, turn on the radio and find yourself digesting what sounds like the same story you heard yesterday: the economy is weak, demand is falling away and no one’s building anything new.

I’m sure it’s the same in many sectors of business, but I get fed-up of it. Yes, we all know the economy has got problems and that the good old days aren’t coming back any time soon.  Yes, we know that demand is weak and that developers are struggling to find the money to stick a spade in the ground.

But there are people out there who do need to move, and there are properties available which could fit the bill.  So let’s delve beneath those headlines to find out what the options really are – what clients want to hear is not what they’ve already seen and heard, but how we can work round it.

If we understand the precise nature of the problems the market faces then we’re on the right path to doing that. You’d think the market might be awash with unsold industrial warehouses right now, but it isn’t: because demand is weak, supply is thin.  The reason why demand is thin is that businesses are struggling to prise money out of risk-averse funders.  My experience is that this isn’t the whole story: at FHP, we have been handling a steady stream of deals around the Nottinghamshire-Derbyshire border which involve what I’d call the ‘business bedrock’ – very carefully-run businesses who conserve cash and are not necessarily reliant on funders to make a move.

Another reason why there’s still steady activity in the border territory is that there has been some decent second-hand stock available – typically, locations like the Nyland Graphics site on Alfreton’s Clover Nook Estate. It is a modern, oven-ready building, the site has room to expand, and it’s only a stone’s throw from Junction 28 of the M1. With all those boxes ticked, we sold it in the space of four weeks!

The supply of industrial property in Nottingham is more of an issue.  There’s plenty of older, second hand leasehold stock around, but a dearth of modern, well specified premises with good space, good yards and good access to the road network.

No surprise, then, that most of the activity is happening around the M1 corridor. But this activity is slowly eating up a dwindling supply, with only a small number of speculatively-built sites still available.

So what are the options when supply and demand appear to be fighting each other to a standstill?  Are we looking at a tipping point where businesses looking for, say 50,000 sq ft upwards have three simple choices?  Those choices are to look elsewhere, sit tight and do nothing, or explore a design-and-build option.

Looking elsewhere is not an easy option. Other areas may well face the same supply-demand dilemma, and most established businesses see shifting lock, stock and barrel to somewhere different as significantly disruptive to the business as some staff may struggle to make the move. Sitting tight and doing nothing appears a less risky option, but you have to consider whether it could cramp business growth and your ability to meet client demand. And is an older property going to become a money-pit?

So what about the design-and-build option? There has been activity here at the higher end of the market, and it has involved some of the most experienced developers around at sites like Blenheim Park at Junction 26, Castlewood at Junction 28, Access Point at Junction 28, EMDC at Junction 24A, and Gazeley’s G Park site at Newark.

At these design and build sites our developer clients know the economy is tough and that cost is usually the key relocation driver. Therefore, it is these clients who are winning the race to secure design and build occupiers through listening to their needs and structuring clever deals that enable financial efficiencies to be achieved, often making design and build options as financially attractive as options on existing units, with of course the added benefit for occupiers of taking a bespoke property.

So design and build projects can work and some notable deals are being done at locations likes Clowes Developments’ sites at Castlewood and EMDC, with occupiers identifying efficiencies which make these projects work for them.

But away from those headline deals I think we are inevitably looking at supply lagging behind demand for a while. The bad news is that I think that could well hamper economic growth, and government may need to consider whether investment in infrastructure (notably the A453!) could unlock the kind of development which we know there is an appetite for.

For the foreseeable future, what the business bedrock needs is information and advice about good quality second hand stock.  The answer to that?  You know where I am!

At the time, I thought I was being pretty brave to leave the comfort zone of Savills and cross town to join FHP. Job security at Savills was high and yet I had little doubt that the world as we knew it was on the slide.

My fears were justified, with the economy hitting a wall. But the lure of working for one of the biggest names in Nottingham was too big to resist. Four years on, I know I made the right move – I’m still standing and, just like FHP, I’m all the stronger for it.

Here’s my own account of how the world we operate in changed:

September 2007

I got married, went on honeymoon, came back and started at FHP. All in the same month.  I don’t do things by halves…

I took on FHP’s city centre office stock and, although the quality was there, so was the quantity.  Even at this level of the market times were tough and we were clearly beginning to hit the brakes. Blind confidence kept the market moving, but supply was still outstripping demand.

Deals were hard work, with rents dropping and landlords trying to keep ahead of the fall.

Quality locations like The Atrium saw rents drop to £10 a square foot.

But there were 22,000 of those square feet available there in 2008, and The Atrium wasn’t alone.

Where we once had queues of people and rents at £16 per square foot, we now had few takers able to choose the pick of the deals. Many landlords were still hesitating as they had been able to achieve so much more only a short time previously. 

September 2008

Lehman Brothers. Need I say more? My worst fears were starting to be realised.

I was still the new boy at FHP and times were hard. There weren’t enough deals and even those which you had down as “surefire” would drag on for months or fall through as confidence drained away.

The big problem – one still around today to some extent – was matching the expectations of landlords to those of the now all-powerful tenant/purchaser. Longing for the “good old days” was no use – you had to get the deal done and beat other landlords to the finish line.

With empty rate liabilities and service charges burning a hole in the landlord’s pocket, incentives rose as lease lengths fell. There was a sense of paralysis and at times people didn’t even want to downsize for fear of getting it wrong

September 2009

Unemployment hits its highest level since 1995. And The Sun jumps ship to the Tories. Times were still tough and it sometimes looked as if it was getting worse.

However, there was a chink of light at the end of the tunnel as FHP saw a number of new instructions begin to emerge – notably Wheatcroft Business Park, The Point and No 1 Nottingham Science Park. In better times they would have been full by now.

Our whole team jumped on these opportunities, but I was charged with handling them. It gave us something to get our teeth into but also reminded us that if we didn’t look after our clients, someone else would.

Generally, larger lettings just weren’t happening. But we took some solace from 15,000 sq ft of deals at The Atrium and a similar level of lettings at 30-34 Hounds Gate.

September 2010

Elections, ash clouds and an oil spill. Okay, they didn’t happen in September but they all had an effect which lingered for months. Nick Clegg said “Hold your nerve and we’ll change Britain.”

I’ve used it out of context, but it summed up the feeling in the market. A fragile confidence was returning and it looked like recovery was on the way. Deals were on the up but everyone was hanging on the next bit of news – the election result, the Budget, the Spending Review.

But finally we were seeing some movement and as we headed towards 2011 you could feel things improving. Deals were being done. Quality of presentation and marketing was important but the key driver was still the deal. Landlords were accepting their relationship with tenants had changed and they needed to be looked after at all costs.

Good news? At Southreef, Crytek took 16,500 sq ft. Over 17,000 was let to Ikano at Waterfront Plaza. And at No 1 Nottingham Science Park 15,000 sq ft was let to Chinook, and 10,000 to Changan.

September 2011

The Japanese earthquake, the Royal Wedding, threatened defaults on sovereign debt, Greek bailouts (that’s enough bad news, thanks).

It’s still an uncertain picture, but that doesn’t change the fact that this has been a better year. FHP has filled Wheatcroft Business Park and Waterfront House. We’ll soon be following suit at The Atrium, where we have only 3,000 sq ft available. In our time as agents at No 1 Nottingham Science Park we have seen more than 30,000 sq ft of deals concluded.

Rents have been creeping back up. Our first deal at Wheatcroft was £10.50 psf, but we are now back to £12.50. We’ve also seen excellent activity levels in smaller offices.

How has my team changed? It’s bigger than when I started and we now have real confidence and energy. We’re picking up high quality instructions, such as Bradmore Business Park, and following FHP’s acquisition of Pearl House on behalf of clients, and new instructions such as Apex Business Park in Nottingham and in Osiers Business Park and Equinox in Leicester, we are bringing new stock to the market.

In a strange way, I’ve really enjoyed the last four years. It’s been a rollercoaster.

The future…

Which brings us on to 2012, the year of the Olympics. At times over the past four years it’s felt like a permanent 100m sprint.

The speed may have relented a little, but the pace and the pressure are still intense.

The world seems to be going through yet another hiccup at the moment but we have to keep our eye on the long-term in Nottingham. As stock levels diminish we will see steady, incremental growth in office rents. There are new build schemes like Unity Square, Trivett Square, the Sentinel and the Portal all lining up to capitalise on this.

Ironically, when the Olympics are over the race could be on in Nottingham. Money is being lined up to invest here in retail, in transport, in an enterprise zone.

I don’t think it will be long before the next phase of new build schemes gets under way.

Empty shops are a blight on a city centre and the latest surveys suggest their numbers are growing in Derby.
One survey being prepared for release shows that of Derby’s 881 retail premises 88 are vacant and a further 18 are occupied but available.

Above, George Dunnicliffe, of FHP, in St Peter’s Street, which has become busier since the bus station opened at Riverlights. Left, work is under way on a new jewellery store in Sadler Gate but, below, the closure of TJ Hughes has left a big gap in Derby’s shopping area.

On the face of it, that means the availability rate is up from just under 12% last year to over 14.5%.

This report, put together by commercial property consultancy FHP contradicts statistics released last week by the Local Data Company which put the vacancy rate in Derby city centre at a whopping 19.4%.

And walking around the city’s core retail areas with FHP surveyor George Dunnicliffe, a different picture emerges again. He was the one who did the legwork for the forthcoming FHP report, counting up the premises to create an up-to-date picture of the city centre.

He said: "Times aren’t great for retailers and it is a shame that cafés in The Strand and Strand Arcade have gone but there is plenty of activity in the market."

A year ago, The Strand was fully occupied for the first time in four years. Now there are three empty units available with Raybould and Sons.
Martin Langsdale is an agent at Rayboulds and chairman of the Cathedral Quarter Business Improvement District management group.

He said: "In The Strand, we have a few units available but are close to agreeing a letting on one and there’s a fair amount of interest in the others. Nevertheless, I am surprised that the vacancy rate has gone up because that is not what we’re seeing in the Cathedral Quarter. There have been a few deals that have fallen through recently but having spoken to a number of businesses, I’m quite optimistic. And the fact that people can get into Bold Lane car park more easily is making a big difference."

Turning from The Strand Arcade onto Sadler Gate, George meets another commercial property agent with clients interested in two empty units in the street.

George said: "In this area, Serendipity has gone but opposite at 49 Sadler Gate, work is under way on a new jewellery store.

"And there is strong interest in the restaurant premises at 5 Friar Gate with negotiations at an advanced stage. You only have to have a good few weeks, get a couple of shops away and that percentage of empty properties will soon come down again."

In the Corn Market there is interest in the empty shop opposite Primark and the small unit that was previously home to jeweller HL Brown where the shop front is being renovated. There is an offer on a small unit at 8 Victoria Street and the sale of the former Debenhams building remains in the legal pipeline. At the bottom of Green Lane, piano bar and lounge Vie is being fitted out in the bar premises formerly known as Ranby’s.

Jeweller and specialist clothing retailer Janet Field may be vacating but another occupier has been lined up for her shop.

Another loss to the area is Strand Wools but, once again, another occupier has been lined up and the premises formerly occupied by children’s shoe shop Step by Step is under offer, having been vacant for several years.
"On the downside in Green Lane, the Quicksilver amusement arcade premise has not generated much interest," said George.

Along St Peter’s Churchyard and onto St Peter’s Street and the old On a Roll sandwich shop is under offer, as is number 97.

St Peter’s Street has become busier as patterns of footfall have shifted again in the city centre.

"One of the biggest changes that have happened to the city centre is the opening of the bus station at Riverlights which has made East Street the busiest street in Derby," said George.

"More people are drawn to the left towards Westfield which is a big pull but, hopefully, once people have visited the shopping centre once, they will return to find out what else Derby has to offer."
There is still no getting away from the fact that there has been an increase in the number of charity shops, pawnbrokers and bookmakers in the last 12 months but that is still better than having empty units sticking out as obviously as missing teeth.

If deals were completed on all the shops in Derby currently under offer then the vacancy rate would fall to a far more respectable level.

George said: "There have been a few deals fall through recently because bank finance wasn’t available."
Bank finance is an ongoing concern and is making life harder for potential occupiers and agents alike, contributing to the numbers of empty properties in the city.

"There are several reasons for the increased vacancy rates," said George.

"Firstly, the completion of the leisure units at Riverlights has led to the increased availability.
"The number of buildings that are occupied but available has increased which ultimately shows there is an increased amount of temporary operators."

There have also been more national retail casualties as TJ Hughes, Jane Norman and Henleys have all gone into administration, leaving gaps within Derby’s shopping centre areas. That said, Westfield has a good record of filling the gaps with Phase Eight, Duck and Cover, Pandora, Iceland, Poundworld and Ilkeston Co-op Travel moving into Westfield in the last year.

Janine Bone, centre manager at Westfield Derby, said: "We currently have very few vacancies and are talking to a number of potential retailers about these units with several scheduled to be open for Christmas trading.

"We are on track to reach 25 million footfall again this year and we will have our 100 millionth customer visit the centre this month which is testament to the centre’s consistently strong footfall since we opened in 2007."

Both FHP’s report and The Local Data Company figures back this up, reporting that shopping centres such as Westfield are weathering the storm better than the traditional high street.

Evidence shows retailers closing stores that are not performing and relocating to shopping centres. Of the 251 indoor shopping centre units in Derby, including Westfield, The Audley Centre and St Peter’s Way, only half a dozen are vacant.

George said: "This year has seen a rise in inquiries from national, regional and independent operators and, although the vacancy rates are up on last year, the uptake from occupiers and interest in the city is encouraging."

Photo courtesy of Derby Evening Telegraph.

There has been a lot of bad publicity in the media regarding the retail sector recently with companies such as Jane Norman, Moben, TJ Hughes and Habitat going into administration and the announcement from local company Thorntons set to close up to 180 stores over the next three years.

Despite these announcements Derby’s Retail is performing well and is now up two places to 31st in the CACI annual retail and expenditure study rankings. This is a return to their highest position two years ago with the potential spend increasing by 7% meaning Derby is breaking the £700m barrier for the first time. Over the past 12 months we have seen 35 new lettings within the Westfield Shopping Centre with recent deals including Duck and Cover, Pandora, Iceland, Poundworld and Ilkeston Co-op Travel. Card Factory has also opened its second store within Westfield Derby with Lispy and Swatch opening their first stores in the East Midlands. These key deals have resulted in the Shopping Centre now being 98% occupied. Results show the overall availability rate in Westfield Derby has decreased from 7.23% to 3.27% in the last 12 months.

Turning an eye to the High Street, the opening of the new Bus Station last year has had a very positive effect on East Street. We have seen a tremendous increase in footfall, which in turn feeds Westfield and St Peters Street and so in this area there has been steady uptake with fewer casualties on this time last year. Key deals to note include Barclays Bank taking a combination of the former Ilkeston Co-Op Travel and the adjacent vacant unit on St Peters Street which is currently being fitted out. Also Cheque Centres have just opened at 111 St Peters Street and Greggs have recently completed on 48 St Peters Street.

Over the last 12 months FHP have completed 9 new lettings within the Cathedral Quarter with a further 3 shops ‘Under Offer’ which are due to complete shortly. Sadler Gate has seen a great deal of activity with new start-up companies such as, Scraggy and Finch jewellery, Wonky Table Bistro and Lancaster and Thorpe a national chain of opticians taking new premises.

A recent study undertaken by FHP identified 811 shops in Derby City Centre’s retailing core, of which 88 shops are vacant and 18 shops are occupied but available. This equates to an overall ‘availability rate’ for Derby City Centre of 14.66%. This is a slight increase from the Spring/Summer Study of 2010, however the quality of operators taking new space is significantly better.

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.