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News Release

Nottingham

Now is the start of emerging trend

London companies looking to locate to Nottingham


NOTTINGHAM, 18th September, 2015 - The arrival of NOW: Pensions owned by pensions fund giant ATP in Nottingham taking 20,000 sq ft of prestigious office space at 37 Park Row was significant in more ways than one. Not least because of the creation of 250 jobs in the city - with the company putting requirements out for client and technical support staff, sales, HR and IT workers; but more critically for the long term sustainable future of Nottingham, as NOW represents an emerging trend of London based companies looking to set up their back-room operations in the regions.

James Keeton, director at the Nottingham offices of global real estate advisor, JLL, as joint agent on 37 Park Row, helped broker the deal and believes the city will undoubtedly see other London companies choosing Nottingham as their preferred destination.

"JLL across the regions is seeing a continued trend of both ‘north shoring’ and ‘strategic dispersal’ as occupiers consider relocations of functions outside of London, fuelled by rising living and occupational costs and Nottingham is no exception.

For companies in the capital attracting young employees is becoming an increasing problem. As the regions invest in their cities and become more dynamic, places like Birmingham, Manchester, Nottingham and Leeds are increasingly more attractive as employment destinations to graduates.

Latest research from JLL shows that the residential property market shows no sign of abating in London and the South-East either, with predications that prices will continue to rise by 5 per cent per annum for the next five years.

We are now seeing corporates having their main HQ's in London and the backroom offices in the more reasonably priced and cost efficient regions. You only have to look at Deutsche Bank's relocation to Birmingham to see this in action, which may well have encouraged HSBC to move its personal and business banking to the city too. The BBC to Manchester another high profile move.

James continues: "Nottingham scores extremely well on data analytics carried out by companies to identify key cities which could support a relocation of its back room operations. It has an established financial services reputation, backed by a large, young labour pool and two strong Universities. A vibrant city that provides a good quality of life and a property market which has shown a more steady rise, making it much more accessible."

"Recent investment in infrastructure with the new tram links, revamped station and duelling of the A453 from the city to the M1 also makes it an attractive proposition. The only category we don't score so highly on is space. We have a gross shortage of stock and Grade A offices and if we are to be successful in continuing to attract out of town occupiers in to the city, we need to have the availability of space. This is not just any space, this is high specification offices in prime locations, something which Nottingham has in the main failed to deliver to date."

"We can evidence the success of clients such as BMO Real Estate have experienced with speculative refurbishment. 37 Park Row is the second speculative refurbishment that our clients have successfully delivered in Nottingham. To have the majority let to NOW: Pensions at completion is testament to the quality of space they have created and current demand within the Nottingham market.

"We now only have one floor remaining at 37 Park Row, but do not expect this to be available for long. Consequently, our clients are already looking towards the next refurbishment in the city, being the adjacent Agora building at Cumberland Place. Alongside this, CCLA have recently completed the refurbishment of New Castle House, Nottingham and these will bring further welcomed supply of Grade A refurbished space to the market in 2015, however still some way from meeting the latent demand within the city.”

Activity is certainly up in all of the regions. The demand is here in the city. Nottingham's challenge is now to make sure we have all the pieces in place to prosper from the upturn.