Nottingham launches Office Market Review

  The inaugural Nottingham Office Market Review is to be launched in the city next week by the newly created Nottingham Office Forum (NOF).   The research is the first detailed analysis of existing overall office stock and analysis of supply and demand in the city, compiled by all of Nottingham’s commercial property agents who have come together under the umbrella organisation of NOF, in partnership with Nottingham Regeneration, Experian, Invest in Nottingham and Lorne Estates.   Key findings include:   Experian forecasts the city will create 14,500 jobs between 2015 and 2025   Much of that growth will come from the expansion of financial and business services, along with further growth in bioscience, technology and digital media   Around 50% of the city’s older existing office stock may not be suitable for future requirements. Plans are well advanced to create new space to accommodate forecast growth   Rental yields and capital values in Nottingham are likely to be greater than in some other regional cities   Continuing large-scale investment in Nottingham’s transport infrastructure is assisting the momentum of key commercial zones, with the government approving further expansion of the tram network and improvements to the existing train station.     Nottingham has a total of 6.73m sq ft of existing office stock. Of this figure, 1.1m sq ft is grade A and 2m sq ft is grade B space. The city also has a further 2.54m sq ft of consented space within its development pipeline.   Around 680,000 sq ft of deals were struck in 2009/2010, the largest of which was E.ON taking a prelet at the Guildhall site and Nottingham City Council relocating to Loxley House.   The report, which is officially launched in the city on Wednesday, suggests that there is no lack of office space in the city but there is a lack of quality. It also asks for the development pipeline to be addressed, how much will actually be/can be delivered?   The Nottingham Office Market Review says the city has a resilient and robust economy which has moved away from its industrial heritage, developing strengths in key sectors which range from bioscience and technology to financial and business services, retail and customer contact management.   Invest in Nottingham’s Ken Nettleship, said: “The commercial property market is not easy at the moment, and it may be that some of the office schemes already in the pipeline have to look again at who they are aimed at. We can’t ignore that reality.   “But our detailed audit of office space suggests that when we look beyond this immediate challenge we will need more high quality office space, not less.   “A significant amount of the currently available space is not in the right shape to satisfy demand, employment growth will begin to accelerate in the medium-term and the property industry will be under pressure from occupiers to provide sustainable, cost-effective and environmentally efficient space.”   lisa.pilkington@estatesgazette.com   To access all EGi news stories and commercial property data sign up for a free trial today, or visit the subscription options page to find out more.