East Midlands In My View: Darran Severn, Director at FHP Property Consultants Darran Severn
During the first half of 2025, FHP have encountered good success across the East Midlands and take-up was domi- nated by several “big unit” deals includ- ing the lettings of EMDC343, EMDC190 and DVP113, totalling 646,000ft2 alone along the A50 corridor. In addition there was a further 340,000ft2 let at Junction 28 at Panattoni Park. As we approach the final part of the year, I can confirm that take-up outside these transactions is in line with 2024.
Market conditions have been tougher, with nervousness through- out businesses being created by any number of national and worldwide influences.
Pleasingly Derbyshire has remained resilient by virtue of excellent transport links, good access to the A38, A50 and M1 and a strong pool of local labour. Market activity for units between 20,000ft² and 40,000ft² has been stronger with good interest for both new build units and good quality second hand stock. Generally, there has been less demand for units between 50,000ft² and 90,000ft² and above 100,000ft² we are seeing stock levels reduce following the earlier suc- cess in the year and fewer units are now available in this size range. There is no doubt that enquiries and viewings have dropped com- pared to this time last year, however, we are still generally short of stock to both purchase and rent of all calibres throughout Derbyshire
and the wider East Midlands and whilst demand remains resilient, there is no doubt that transactions are taking longer to complete as buyers and tenants alike remain cautious with their expectations.
Deals though continue to be done and as we head into the second half of the year, we remain optimistic for an increase in demand and if economic conditions do improve then once again our market will be faced with a lack of good quality space across all sizes and grades of accommodation.
The good news is that there is still limited competing space, particu- larly in Chesterfield and the surrounding areas. As a result, we are continually looking to unlock development sites and we are currently working with Roe Developments who are building out Egstow View Business Park, Clay Cross which will provide 13 trade counter/ware- house units between 1,500ft² and 20,000ft². These will be available for occupation later this year and we have already agreed terms with Screwfix, Howdens and Starbucks.
To add to the new development in Clay Cross, FHP are also working with Atkinson Construction, who are building industrial and office accommodation on the old coal yard site in Grassmoor. The developer is currently building phase 1 which consists of four office buildings comprising 4,622 ft² per building. These offices will deliver high qual- ity accommodation which can also be split on a floor-by-floor basis. Phase 2 of the development will consist of new small to medium sized industrial/warehouse units built to a high-quality once again.
Nottinghamshire – Industrial Sweet Spot!
We interview Scott Osborne MA MRICS Director Harris Lamb Nottingham
How would you summarize the current state of the Nottinghamshire industrial market?
Scott Osborne
In my view, Nottinghamshire sits at the sweet spot of resilience and transition. Demand for well-specified industrial and logistics space remains healthy, underpinned by strong
regional take-up across the East Midlands — the region has recorded the highest take-up share over the past 12 months — which feeds through into sustained rental pressure locally.
We’re hearing a lot about rental growth. Is that visible here?
Absolutely. Across the UK industrial sector headline and prime rents have continued to rise through 2024–25, and that momentum is visible in Nottinghamshire’s market for good-quality stock.
National brokers report ongoing annual prime rental growth and expect further, if more moderate, increases next year — a backdrop that is translating into higher headline rents and firmer values for modern Nottinghamshire units. In my view, tenants are paying up for quality, location and carbon-efficient buildings, which is supporting that uplift.
What’s driving future direction — and are there supply-side constraints?
In my view the market dynamic is straightforward: demand is steady, but speculative development has cooled, tightening the available pipeline. Savills and other commentators flag a shrinking develop- ment pipeline and rising occupier requirements — that combina- tion tends to sustain rental growth, particularly for Grade A and multi-let mid-box product. I expect landlords with ready-to-deliver, ESG-compliant units to benefit first.
30 Any specific local trends you’re seeing?
Yes — three stand out. First, a flight-to-quality: occupiers increasingly insist on higher eaves, yard depth, EV-ready power and solar-ready roofs. Second, the growth of multi-let and mid-box occupational demand from SMEs and regional distributors (rather than purely national parcel occu- piers). Third, investor appetite is focused on income-producing, well-let estates as transactional opportunities remain constrained by low avail- ability. In my view these trends will push secondary stock to bifurcate — well-specified assets rising in value while poorer stock softens.
Any standout schemes in Nottinghamshire to watch?
Local deals tracked by agents demonstrate steady activity across Hucknall, the Toton corridor and key urban fringe locations. Notable greenfield or large-lot proposals that gain consent will be mar- ket-moving because new supply is scarce; where delivery is guaran- teed, pressures on rents are likely to ease modestly, but only once product arrives. In my view, the projects to watch are those that combine scale with sustainable credentials — they’ll set the tone for occupational requirements and rental levels.
Final verdict — what does the future hold?
In my view, expect further headline rental growth in the near term for prime industrial stock, a continued premium for sustainability and location, and a gradual market correction only when meaning- ful new supply reaches the market. Investors and occupiers who prioritise quality, flexibility and energy resilience will be best placed as Nottinghamshire’s industrial market moves into its next phase. For more details please visit
www.harrislamb.com
COMMERCIAL PROPERTY MONTHLY 2025
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