Mark Tomlinson of FHP Property Consultants talks about the office market in the Professional Quarter of Nottingham city centre.
2012 Stats and Facts
Transactions outstripped new supply by 50%
There is 20% less space available in the area than this time last year
Just under 30,000 sq ft of office take up in the area in the year
FHP completed 13 transactions totalling 20,000 sq ft
For decades this quiet corner of the city has been established as Nottingham’s traditional Professional Quarter, with the area bordered by Park Row, The Ropewalk and Derby Road occupied by accountants, law firms, private clinics and a range of property and development businesses. The location is discreet, and the buildings prominent without being ostentatious.
2012 was a good year for this area of the city, with plenty of activity to shout about. We have welcomed a whole host of new tenants to the area such as EVS Translations, Rizk McCay, Wallwood Independent, Clearwater Corporate Finance and PAM Group to name a few. At the start of the year the landscape on Regent Street was one of imposing buildings hidden behind an array of marketing boards which can give the wrong impression of what a desirable area this is, it had become almost an assumption for many local businesses that this area was out of reach financially – but this is not the case.
In an area surrounded by amenities ranging from the established Hart’s Restaurant and Cast Deli through to the recently-opened Browns Brasserie and being just a couple of minutes’ walk from the City Centre, prospective tenants have been surprised by what they can now get for their money following a softening in rents and incentive packages offered by landlords. As a result, vacancy levels have decreased despite buildings coming to the market following recent moves by Roythornes Solicitors, Potter Clarkson Patent Attorneys and Curtins Consulting.
Out of the recent activity in the area there is something which all of the successful landlords have in common in this market – the requirement to refurbish and modernise buildings to provide an attractive and easily occupiable solution for tenants. If you are a landlord then you have to stack the odds in your favour as, although there is some positive activity in the market, enquiry levels remain suppressed and there is still a selection of buildings for prospective tenants to choose from.
From a freehold perspective this area remains one of Nottingham’s front runners. Although values have dropped since the hazy days of 5 years ago, they have remained strong, driven by a lack of supply and an underlying demand for freehold opportunities in this area which are seen as a secure investment with good flexibility on alternative uses. This is especially the case for owner occupiers who tend to pay a premium over investors in this area. Many would be purchasers, however, are hamstrung by the lack of availability of finance which I feel is hampering freehold values still.
So, looking forward to 2013?
The outlook remains the same still with plenty of available opportunities for enquirers which are now perhaps of a better quality than those offered in previous years, owing to a change in mind-set of many landlords on the presentation of their properties. Tenants can expect to secure good quality accommodation on attractive rental packages, landlords should expect voids but should be comfortable that a good quality tenant can be found and vendors can achieve quick sales at strong levels compared to the previous few years.
