Insider Media Limited

Nottingham has the highest level of investment activity in the East Midlands, according to the 2010 Innes England Market Insite report launched at the city’s conference centre this morning. The report said the commercial property market in Nottingham experienced “significant progress” in 2010, despite some of the most challenging conditions the market has seen.

The report monitors the regional property market over the past decade – providing individual focuses on Nottingham, Derby and Leicester.

In Nottingham, the 2010 report highlights a 50 per cent rise in industrial market activity, with take-up driven by a series of major deals; the highest level of investment activity in the East Midlands, with nearly £300m worth of deals concluded.

Craig Straw, director at the Nottingham office, said: “When you consider how difficult 2009 was for the property industry, few would have been surprised if 2010 had been more of the same. It’s a tribute to the underlying strength of the Nottingham economy that we actually saw significant progress in several areas of the market.

“Nottingham recorded the highest level of investment activity for the region, there were major deals in both the office and industrial markets, while retail is now looking forward to potentially two significant shopping centre revamps and the launch of the 'Retail Business Improvement District'.”

Straw said that the government’s decision to confirm funding for the extension of Nottingham’s tram network, as part of the Comprehensive Spending Review, has been “well-received” by the market.

According to Innes England, Nottingham’s crucial retail economy is likely to get a shot-in-the arm during 2011 from Westfield’s decision to invest £40m in a substantial remodelling and refurbishment of the Broadmarsh Shopping Centre. Owner Capital Shopping Centres has also been drawing up plans for a 400,000 sq ft extension of the Victoria Centre.

The retail core around Bridlesmith Gate is also likely to benefit from the opening of Jamie Oliver’s Jamie’s Italian alongside Paul Smith, and the arrival of a Carluccio’s restaurant and deli.

Straw added: “It’s a tribute to the size of the Nottingham economy that we still saw a number of significant office deals, including Miller Birch’s pre-let to E.ON – the largest transaction of its kind that year outside of London.

“There was also movement on the city’s fringe , with Speedo switching to a landmark headquarters at the NG2 Business Park, and the Chinese car company Changan coming to Blueprint’s No 1 Nottingham Science Park. The Changan move represents a significant inward investment and a coup for the city against competing locations.

“Nottingham has waited a while for significant movement in retail and leisure but we will see some welcome activity in 2011. It remains challenging for the retail economy, but Westfield’s investment reflects the city’s continuing status as a shopping destination of national standing.”