Nottingham Commercial Property Market Guide: Office, Industrial, Retail and Development (2026)
Nottingham is the East Midlands' principal commercial centre, with a 2025 office market that delivered a 30% uplift in take-up, the city's strongest industrial performance since 2014, and a development pipeline anchored by the Southside regeneration and the Island Quarter. This guide covers all four commercial sectors with current data, key deals, and the projects reshaping the city.
Nottingham is the East Midlands' most significant commercial city — a university city of 340,000 people with a diverse economic base spanning financial services, digital technology, life sciences, retail, and higher education. Its commercial property market delivered a strong 2025 across all principal sectors: office take-up rose 30%, industrial take-up reached its highest level since 2014, and a pipeline of regeneration investment is beginning to deliver the new commercial space the market needs.
This guide draws on data from Innes England, FHP, Knight Frank, Nottingham City Council, and CoStar.
The Office Market
Current market conditions
Nottingham's office market delivered a 30% uplift in total take-up in 2025, rising to 363,700 sq ft, according to Innes England's Market Insite 2026 report. Particularly notable was the 190% increase in Grade A city centre take-up — confirming the flight-to-quality trend that defines office occupier behaviour across every UK regional city.
2024 total Nottinghamshire take-up was approximately 359,000 sq ft (FHP), reflecting a broadly stable market with continued emphasis on quality over quantity. The average deal size in 2024 was approximately 3,750 sq ft, up 7% from 2023, with 73% of deals under 5,000 sq ft, reflecting the dominance of smaller and medium-sized occupiers in the market.
Rents
Prime rents for new and refurbished office space in Nottingham now exceed £26 per sq ft (FHP), having risen consistently as Grade A availability has tightened. The contrast between prime and secondary rents is the defining feature of the market: well-specified, refurbished buildings with modern amenity are generating strong occupier interest and shorter void periods, while secondary stock is struggling unless it undergoes significant capital investment.
Key occupiers and notable deals
The standout deal of 2025 was the letting of 31,170 sq ft at Castle Meadow Campus to Arden University — the city's largest office letting since the end of Covid-19 lockdowns (Innes England, CoStar). Building D at Castle Meadow, originally designed by acclaimed architects Hopkins and completed in 1994, was formerly occupied by HMRC. The University of Nottingham acquired the campus in 2021 to establish a new city centre hub for business, innovation, and academic collaboration. Arden University's relocation to this Grade II listed building "signals real confidence in the city centre as a hub for education and innovation," according to the letting agent.
See Tickets took 19,362 sq ft at The Hockley Pod on Fletcher Gate — another significant letting confirming the creative and digital technology sector's growing footprint in Nottingham.
Out-of-town business parks in Nottinghamshire continue to experience robust demand. Grade A spaces in these locations generate significant interest during marketing periods and remain on the market for only a limited duration (FHP).
What occupiers look for
Nottingham office occupiers prioritise: city centre Grade A buildings with modern amenity and strong EPC credentials; proximity to Nottingham railway station and the NET tram network; access to the University of Nottingham and Nottingham Trent University graduate talent pool; and modern, flexible floor plates configured for hybrid working patterns. The preference for quality over quantity is the dominant market theme.
The Industrial and Logistics Market
Nottingham's industrial sector delivered its highest annual take-up since 2014 in 2025, at 1.16 million sq ft (Innes England). This exceptional performance reflects the continued strength of the East Midlands logistics market — benefiting from its central England location, M1 frontage, and proximity to East Midlands Airport (the UK's largest freight airport by tonnage).
The most significant transaction of 2025 was the 145,723 sq ft letting of Power 146 on Thane Road to BDM Logistics. Swedish engineering group ABB also took 100,000 sq ft at Fairham Business Park, reflecting the continued demand from engineering and advanced manufacturing occupiers alongside logistics.
The East Midlands Golden Triangle — bounded by the M1, M6, and M69 — remains the UK's premier national distribution location. Nottingham's M1 frontage at Junctions 24–26 provides direct access to this strategic logistics zone, supporting sustained demand for large-format distribution facilities.
However, industrial investment activity in 2025 was somewhat constrained by limited stock availability (Innes England). The drop in industrial investment from 75% of all East Midlands activity in 2024 to below 50% in 2025 reflected stock constraints rather than demand weakness.
The Retail Market
Nottingham is one of the UK's top ten retail centres, anchored by the Victoria Centre, Broadmarsh, and the distinctive Lace Market and Hockley neighbourhoods. The city's retail market benefits from one of the strongest catchment populations in the East Midlands.
The Broadmarsh area has undergone significant transformation: the former Broadmarsh Shopping Centre was demolished and replaced with a new Green Heart park space, with a masterplan envisaging 1,000+ new homes alongside workplaces and cultural uses. This represents a deliberate shift from pure retail to mixed-use placemaking — a direction taken by many UK city centres where large-format traditional retail has become unviable.
City centre bars and restaurants saw continued growth in 2025 (Innes England), and convenience retailing alongside drive-to and drive-thru destinations also performed positively. The Lace Market and Hockley — Nottingham's creative and independent retail quarters — remain vibrant and continue to attract occupiers seeking distinctive, affordable space.
The Development Market
Southside regeneration — The £2 billion Southside development is Nottingham's most ambitious city centre transformation. The scheme comprises a City Hub college campus, Grade A office space, refurbished shopping facilities, the redevelopment of the central library and bus station, and significant public realm improvements. These investments are creating thousands of jobs and reshaping the southern gateway to Nottingham city centre.
Island Quarter — One of the UK's most significant brownfield regeneration schemes, transforming 40 acres of brownfield land adjacent to the canal and railway. The Island Quarter masterplan encompasses mixed-use development including homes, a hotel, office space, food and beverage, and public realm. The scheme is being delivered in phases by Conygar.
Castle Meadow Campus — The University of Nottingham's growing city centre presence at the former HMRC campus is establishing a new academic and innovation hub that complements the city's commercial offer.
NET Tram expansion — Nottingham's tram network (the Nottingham Express Transit, or NET) covers three lines serving the city centre and key employment and residential locations. Further expansion has been discussed to serve additional parts of the city-region. The tram network's quality and coverage is a genuine competitive advantage for Nottingham.
Challenges
Limited new-build office pipeline — Despite the 30% uplift in 2025 take-up, Nottingham's office development pipeline is thin. The Grade A vacancy rate is tightening as demand absorbs the existing refurbished stock, and without new speculative development starts, a supply crunch in premium space is likely to emerge.
Secondary retail and Broadmarsh aftermath — The demolition of Broadmarsh has created an opportunity for transformation, but the interim period of reduced retail provision has affected footfall in parts of the southern city centre. The Green Heart park and new mixed-use development will address this over time, but the transition is ongoing.
Frequently Asked Questions
What is the current prime office rent in Nottingham?
Prime rents for new and refurbished office space in Nottingham now exceed £26 per sq ft (FHP), having risen consistently as Grade A availability has tightened. Secondary stock commands significantly lower rents, and the gap between prime and secondary is widening.
What was the largest office deal in Nottingham in 2025?
The largest office deal of 2025 was the letting of 31,170 sq ft at Castle Meadow Campus to Arden University (August 2025) — the city's largest office letting since the end of Covid-19 lockdowns. Building D at the Grade II listed Castle Meadow complex, formerly occupied by HMRC, was let by the University of Nottingham, which acquired the campus in 2021 as a new city centre hub for business, innovation, and academic collaboration.
What is the Island Quarter?
The Island Quarter is a major mixed-use regeneration scheme transforming 40 acres of brownfield land adjacent to Nottingham's canal and railway. Being delivered in phases by developer Conygar, it encompasses residential, hotel, office, food and beverage, and public realm uses. It represents one of the most significant brownfield development opportunities in the East Midlands.
Why is Nottingham significant for logistics and industrial occupiers?
Nottingham's position on the M1 at Junctions 24–26, at the northern edge of the Midlands Golden Triangle, provides direct access to the UK's premier national logistics location. East Midlands Airport — the UK's largest freight airport by tonnage — is approximately 15 miles south. This combination of motorway access and air freight capability makes Nottingham and its surrounding area one of the strongest industrial and logistics locations in the UK.
If you are looking for commercial space in Nottingham or the wider East Midlands, post your requirement on REmatch — describe what you need, and landlords and agents with matching property will respond directly.
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