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News Release

FEATURE ARTICLE

A lack of joined up thinking

could hamper growth says JLL's Matthew Smith


Nottingham, 3 February, 2015 - Whilst JLL was predicting the rebirth of the regions at its Midlands Property Predictions event, Matthew Smith lead director of the Nottingham office of JLL warned that a shortage of high quality employment land along the M1 Corridor and around the East Midlands could hamper growth locally.

Matthew Smith said:
"2014 was a stellar year for the East Midlands in terms of investment volumes with landmark deals such as the sale of Chapel Quarter in Nottingham, contributing towards a 61% overall increase on 2013's figures at £1.954 billion.  However looking to the future and our lack of forward planning may mean we lose out to other regions who are going all out to benefit from inward investment.

"The dueling of the A453 linking Nottingham to M1 completes this year and should have been the catalyst for new industrial development..  The industrial market is booming and there's been much talk of a supply shortage. The lack of land coming forward presents a major issue for the region as businesses will find it harder to grow and more difficult to capture inward investment.

Matthew Smith continues: "To solve this, we need more joined up working between the respective city and borough councils. The Borough councils need to be bringing forward and allocating more land to benefit the city and wider area. This needs to be good quality sites where occupiers will go and can operate their businesses and also where investors perceive growth and are comfortable investing.

"Fortunateley there is some industrial development potential from employment allocations of larger residential led schemes that will come to the market, such as Hucknall, Clifton and Netherfield, however to really benefit we have to open up more opportunities. Through our global and UK connections we know investors are out there looking at the potential of higher yielding regional markets and businesses looking to expand or nearshore their operations.  We need to take action and quickly, as Nottingham is already being overlooked due to the lack of suitable office and industrial stock."

For the office market in Nottingham, Matthew Smith offered more positive news as demand continues to grow for good quality space, across a range of sizes.

"Nottingham has 130,000sq ft of office refurbs starting in 2015 and whilst supply is tight with no new-build coming forward in the short term, this space will attract occupiers and help notch rents in the city going forward. JLL is involved with a number of refurbishments in the city including Newcastle House, Citygate West and 37 Park Row.

"Increasingly we are seeing that ooccupiers are prepared to pay the required rents to get high quality accomodation, which is great news for the market. As rents move forward there becomes increased scope of speculatively funding a new, landmark building for the City."."