NOTTINGHAM is an attractive relocation prospect for large UK firms looking to set up in the Midlands, says a new report that shows the city is thriving.
Nottingham has become a key destination for business, out-performing cities including Leeds and Manchester. When it comes to setting up a business, Nottingham compares favourably to other large cities elsewhere in the country.
And the city has seen 5.9% annual growth in jobs, compared to the rest of the UK at 4.7% over the 2000-2005 period, according to research carried out by CB Richard Ellis.
These are just some of the findings of the Greater Nottingham Conurbation Property Market Activity Report which will be launched at the CB Richard Ellis headquarters in London on Monday 28 July.
Commissioned by Nottingham Regeneration Limited (NRL), the company tasked with helping to drive forward the city’s regeneration plans, the work was undertaken to find out what sort of changes the city and the wider conurbation can expect over the next decade and beyond.
Marc Cole, Nottingham Regeneration Limited’s chief executive, said: “This is a very exciting time for Nottingham as it looks forward to a decade of sustainable, physical and economic regeneration. The report shows that the city has laid the foundation for its renaissance and NRL is working with partners to build on this success and take full advantage of the growing opportunities across the commercial, retail and residential property sectors.
“In particular, what came out of the report is that Nottingham is an attractive option for firms wishing to locate here. What is also encouraging to know, is that the city continues to prosper in terms of retail, office and industrial rents – as the rest of the country is experiencing a downturn.”
Nottingham is currently fifth in Experian’s national ranking of prime retail spots, and is expected to rise further when the Broadmarsh Centre is overhauled by Westfield, bringing 300 new shops.
Meanwhile, the Old Market Square redevelopment has been extremely successful, creating a renewed sense of civic focus with attractions like the Nottingham Eye and a Christmas ice rink.
Recent additions to the leisure offer include a branch of the Yo!-Sushi restaurant chain, upmarket café-bar independent The Walk, two new casinos and a major refurbishment of the Broadway Cinema and Media Centre. Next year will see the opening of Nottingham Contemporary, one of the largest leading contemporary art galleries in England.
Summary of findings:
• Of the eight regional capitals, Nottingham has the largest catchment population profile at 700,000 and from 2000 to 2005, there has been a 5.9% growth in jobs which is well above the UK average of 4.7%.
• Approx. 21,000 jobs within 2001-6 are managers/professionals, while lower value employment remained static or declined. 31.5% of residents of Nottingham and its conurbations are managers, senior officials or professionals
• People who come to study here tend to stay – with 27% of graduates from Nottingham’s colleges and universities choosing to live and work here.
• The average wages in Nottingham and its conurbation are £26,200 p.a. which is 87% of the England average
• Nottingham is a cheaper location to buy a house (70% of the national average)
• Eastside City is one of the biggest regeneration schemes in the country with £900 million investment including 1.4 million sq ft of office space and 56 hectares of development potential – strictly speaking we don’t say this in the report.
• Waterside has 100 hectares of development opportunity and over the next ten years, the area is predicted to attract at least £1.4 billion in investment and become a premium site for residential and business use. Ditto - point made above
• The Three Cities Growth Point status (Nottinghamshire, Derbyshire, Leicestershire) carries an expectation to create 18,400 new homes in Nottingham by 2016.
Office Market
Office location costs in Nottingham are at £28 per sq ft which is below competing centres of Leeds, Liverpool, Manchester and Bristol. The report shows that city centre office rents are at £18.50 per sq ft. In 2007, the take up of office space in Nottingham was 690,000 sq ft, compared to 2006 when it was 390,000 sq ft.
Retail and leisure market
Prime retail rents have increased steadily, bucking the national trend which has shown a decrease – we have not made any specific reference to rental levels in the report. In Nottingham, prime retail yield was up by 5.25% in March 2008 compared to 4.75% in December. “Good secondary”, “secondary” and “shopping centre yields” were up in March – again bucking the national trend – these two sentences should probably be removed. A lower yield is better than a higher yield – therefore as with most other towns.cities the market has suffered/weakened, not improved.. Nottingham’s city centre is consistently among the top five retail centres in the UK. There has been a 40% increase in floor space over the last five years and despite its expansion, there is still demand from high end retailers who wish to set up in the city.
Economic overview
The report shows that from 2001 to 2006, 20,800 new jobs for managers and professionals were created. There is a declining “call centre” dependence - between 2001 to 2006, there was a fall of 1,600 call centre jobs. The report shows that there is a lower dependence now on unskilled trades.
Residential overview
While there is a recognised oversupply of apartments in the city centre, it is council policy to diversify stock. Traditional housing stock is performing well. Nottingham is a cheaper location to buy a house with a detached property in the city costing £306,877, compared to the national average of £342,800.
Science City
Designated as one of six Science Cities in the UK by the Chancellor in 2005, there are ambitious plans to create 20,000 additional science and technology jobs in Nottingham by 2020.
The Conurbation
There is significant opportunity in the conurbation with several regeneration schemes in outlying areas of the city. Beeston town centre is to get The Square, a significant retail-led mixed-use development in association with the NET Line 2 transport proposals; a masterplan is to be commissioned on the Hucknall town centre improvement scheme, and Arnold town centre will receive a boost from a retail-led development opportunity with a mixed use scheme to include residential and leisure uses.
Distribution overview
Nottingham’s industrial performance is strong. Its “edge of the Golden Triangle location” an advantage with its good links to the M1. Prime shed rents are £5.75 per sq ft (junction 26).