CHAMBER NEWS
Leading the way in the East Midlands property sector
Industrial activity has been central to the East Midlands property market during the past 12 months, according to a new report. Both Derby and Leicester recorded their highest ever take-up levels
during 2020 as the region’s strengths in logistics came to the fore, the Market Insite report by commercial property agency Innes England found. Presented virtually last month for the first time in its 14-year history,
Market Insite monitors trends in the regional property market. It showed that while investment levels in the UK commercial property
market were down 27% in 2020, the East Midlands recorded only a 16% drop based compared to the previous 12 months. Innes England said this could be explained by the strength of the
logistics and distribution sector in the region, which accounted for half of all investment activity. The report also highlighted: • Industrial take-up figures were up significantly in both Leicester and Derby – 34% and 82% respectively
• The biggest industrial letting involved DHL taking 900,000 sq ft of warehouse space at the SEGRO Logistics Park East Midlands Gateway, followed by a 532,000 sq ft let to Amazon at Hinckley Park and the let of a 371,000 sq ft speculative building at Derby Commercial Park to Alloga UK
• Availability of Grade A office space remains low in Nottingham – with the market remaining stable as a result
• Footfall in city centres dropped significantly in April 2020 but appeared to recover before the second national lockdown
Peter Doleman, director at Innes England, said: “The industrial sector was
the standout performer in 2020 across the East Midlands. In both Derby and Leicester, the market was dominated by Grade A space industrial lettings, which accounted for 74% and 78% of transactions respectively – showing there was a demand from the big logistics operators. “It is becoming increasingly obvious that there is a need to differentiate
between our more traditional marketplace and the strategic distribution sector, for the overall take-up figures are skewed by these large one-off transactions that could provide a rather false sense of security.
Peter Doleman “Over the year, we also saw an increasing number of enquires for smaller
industrial units, probably stemming from a growing number of new starts, but also modest expansions from a number of existing firms. Enquiries still come from a plethora of sectors but there is no greater demand being shown by distribution companies than there is from manufacturers, which is encouraging.
‘The industrial sector was the standout performer in 2020 across the East Midlands’
“In Leicester, availability in the industrial sector looks very substantial but
put into context, 2.5 million sq ft is represented in 14 buildings all over 50,000 sq ft. There is one million sq ft of industrial space available at Magna Park alone. Meanwhile, in Derby, while take-up is significantly increased on previous years it is still slightly behind compared to Nottingham and Leicester having been affected by the fortunes of Rolls- Royce, which in many ways drives the city’s industrial sector and can be seen as barometer of its marketplace.” The report shows that the office market across the region has remained
relatively stable, with the 645,000 sq ft take-up about 80% of the 2019 total and supply relatively constant at 1.7 million sq ft.
MPs come together to back freeport bid
A group of MPs from both sides of the political divide have joined forces to support the East Midlands freeport bid. The 15 politicians representing
constituencies in Derbyshire, Leicestershire and Nottinghamshire spoke about the benefits freeport status would bring for the region, including 60,000 new jobs, inward investment, regeneration opportunities and the opportunity to lead the country’s green economic recovery. Last month, the D2N2 and
Leicester and Leicestershire Local Enterprise Partnerships (LEPs) submitted a bid to the Treasury for the East Midlands to be one of 10 designated economic areas based around three key sites. These are East Midlands Airport and East Midlands Gateway
38 business networkMarch 2021
industrial cluster in north-west Leicestershire, the Ratcliffe-on-Soar Power Station site in Nottinghamshire, and East Midlands Automotive Intermodal Park, in Etwall, south Derbyshire. The bid has been backed by the Chamber, along with business and
political leaders. Championed by Prime Minister Boris Johnson and Chancellor Rishi Sunak as part of the UK’s post-Brexit global trade strategy, freeports will benefit from a streamlined planning process to aid brownfield development, a package of tax reliefs, simplified
customs procedures and duty suspensions on goods. The MPs involved in the “Say
‘yes’ to the East Midlands freeport” video are North East Derbyshire MP Lee Rowley, Loughborough MP Jane Hunt, Bassetlaw MP Brendan Clarke-Smith, Nottingham South MP Lilian Greenwood, Ashfield MP Lee Anderson, Bosworth MP Dr Luke Evans, Bolsover MP Mark Fletcher, Derbyshire Dales MP Sarah Dines, Rushcliffe MP Ruth Edwards, North West Leicestershire MP Andrew Bridgen, South Derbyshire MP Heather Wheeler, Broxtowe MP Darren Henry, Mansfield MP Ben Bradley, Rutland and Melton MP Alicia Kearns and Gedling MP Tom Randall.
To see the video, visit
bit.ly/freeportMPs
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