This morning my firm launched our third annual ‘insight’ into the state of the market – up to the end of 2009.
Over the next three days we will get around 500 people in Nottingham, Derby and Leicester to see the results of our research – which is not based on some theory, but rather real data. It is interpreted by people who work in the market day in day out.
So, what of the market-place?
According to Experian, “Despite prospects for UK annual average growth being well below its long-term average, Derby, Leicester and Nottingham may prove to have more resilience, thanks to their diverse services sector.”
Sadia Sheikh went on to say that tourism is important for Nottingham. We do need to capitalise on Robin Hood!
And, in the introduction by Managing Director, Robert Hartley, he said, “The view is that the next 12 months will remain difficult, with only weak economic growth and the inevitable election giving people ‘food for thought’. The prediction is for owner occupier markets to be challenging. However, there are the first signs of developers and house builders renewing interest in sensibly priced opportunities in a market that saw little activity in 2009.”
I blogged this week about Nottingham City Councils move to Loxley House and our research showed that this 213,000 sq ft acquisition skewed the figures in 2009 – accounting for nearly 50% of the office floorspace taken up!
As for rents in Nottingham:
Offices – prime rents have remained consistently at just shy of £20 psf
Industrial – prime have slipped back below £6 psf and are now at 2006 levels
Retail – High Street – prime have slipped back to around £225 Zone A – from a high of over £250
Retail – out of town – fairly flat for ope A1 use at around £30 psf
For more details of the figures – and of those for Derby & Leicester you can email me at the office – tgarratt@innes-england.com . I will happily send you a copy of the research.
The final speaker was Mark Chandler from Lloyds. He had some interesting figures – they lent more in Q4 2009 than they have ever lent! There was also an interesting nugget that the LTV (loan to value) is no longer the primary test for a commercial property loan. Lloyds are looking at affordability first – the ability to service the debt has become the primary consideration.
So my overall take – there has been a shift downwards, but we have fared much better as a City than some other places. We are well placed to take advantage of the upturn – which will surely come…
