A surge in demand for logistics centres and residential schemes dominated commercial real estate deals in the East Midlands during the first half of 2022, according to a new report, with total investment volume remaining above the five-year average.
In its latest Market Insite snapshot review of activity across Nottingham, Derby and Leicester, Innes England said that logistics centres and residential schemes accounted for 85 per cent of all transactions.
Although the total investment volume of £1.04bn was down by 14 per cent on last year’s record figure, it was still up on the five-year rolling average by 34 per cent.
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Notable logistics deals included ICG Real Estate’s £101m purchase of more than 500,000 sq ft of space at Mercia Park, Urban Logistics REIT’s £41m acquisition of the 670,000 sq ft East Midlands Logistics Hub near Melton Mowbray and Realterm Global’s £19m purchase of the 240,000 sq ft facility at Forbes Close in Nottinghamshire.
A number of purpose-built student accommodation (PBSA) deals in Nottingham took place, including Bricks Group’s £70m purchase of the 783-unit student scheme at the former Royal Mail sorting office.
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Ben Robinson, Innes England investment director, said: “Following record levels of commercial real estate investment in the East Midlands in 2021, the first half of 2022 has continued in much the same fashion.
“We are still seeing very competitive bidding in the sub-£5m market, particularly in the industrial and beds sectors. Again, that market has dominated the activity.”
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By Adam Beech
Source: Insider Media