Grade A office take-up jumped by 130% in Nottingham’s city centre last year, according to the Nottingham Office Agents Forum.
However, the impressive increase is based on exceptionally low figures, with 49,000 sq ft of grade A space let in the city centre throughout 2013, compared with just 21,000 sq ft in 2012.
Market observers said the city centre office market had struggled during the economic downturn. They added that initiatives such as infrastructure improvements and the newly introduced workplace car parking levy had affected take-up.
The out-of-town sector dominated Nottingham’s office market, accounting for 197,509 sq ft of the 346,711 sq ft grade B to C deals transacted.
Change of use continued to be a significant driver in the Nottingham office market with 413,000 sq ft of existing office stock in the city core being converted into student and residential housing.
Nottingham Office Agents Forum chairman and Innes England director Chris Sinclair, said: “There are some really encouraging findings in this year’s review. Although 2013 overall saw a slight decrease in the total number of deals done, the unprecedented increase in older office stock being given a new lease of life through development is very positive.
“Our inaugural Office Review back in 2010 highlighted over 3m sq ft of Grade C office stock in the city, and called for greater flexibility in property uses and for collaboration between the public and private sectors to respond to the new needs of an evolving market. Three years on, we are seeing the fruits of that labour.”
lisa.pilkington@estatesgazette.com
