Derby Council commits to office development

Derby Council commits to office development

Derby city council has shown its commitment to office development with plans to build a new £6.3 million grade A office development.

Demand for good quality offices in Derby remains high and this development is good news for the city, according to national commercial property consultancy Lambert Smith Hampton (LSH).

Phil Quiggin, head of office for LSH Nottingham, has said that, as demand continues to outstrip supply in Derby, the prospect of the 31,000 sq ft development, located at Bold Lane would help to ease the pressure when it reaches completion in 2019/2020.

He said: “We know there is an increasing demand for good quality offices in Derby but limited availability.

“Less than 8% of all available offices in the city centre are grade A, while 39% is grade C and in need of refurbishment.

“The commitment by the local authority to undertake the development where the private sector has not been able to is good news and will help to accommodate larger businesses that are seeking premises in Derby city centre.”

His comments come following LSH’s Office Pulse report for Q4 2017, which revealed it was the second quietest quarter of the year for office activity, with take up at 29,400 sq ft, although it was 28% higher than the same period in 2016.

Those transactions took total take up for 2017 to 142,000 sq ft, the lowest annual take up for seven years and about one third below the 10-year average.

There were 10 deals in the quarter, all of which were for premises under 5,000 sq ft. The largest was the letting of 4,200 sq ft at the Intu Shopping Centre to Instant Managed Offices.