Nottingham office rent levels on the rise
Rent levels for prime office space in Nottingham have increased by 5 per cent over the last three years, according to research from commercial property firm Lambert Smith Hampton (LSH).
However, the company's Midlands Office Market report stated that a lack of quality space in the pipeline could mean a supply problem is looming.
The figures are in marked contrast to rent levels in Birmingham city centre and its immediate surroundings, which have fallen by nearly 20 per cent since the highs of 2007.
LSH’s research said that rents for prime office space in Nottingham have increased by as much as 5 per cent to about £19.50 per sq ft.
Take-up for the first half the year was below average, but current activity suggests that the second half will be better, said the company.
Ian Leather, LSH head of office for the region, said: "We've seen a limited appetite for speculative development, and new-build schemes are unlikely to get off the ground without pre-lets in place. This means higher demand for second-hand space, but there is a looming supply problem with much of the space being outdated or unfit for purpose.
"There is a need for landlords to look at comprehensive refurbishment options if they are to attract occupiers who have been unable to find suitable Grade A or Grade B space."
