Xhas now been added to your account
CONTINUE BROWSINGGO TO MY ACCOUNT
Market Overview News
2025 has been a challenging year for the UK as a whole, characterised by an Autumn Budget delivered later than expected which served only to heighten speculation and market uncertainty. This has been compounded by ongoing external geopolitical and economic pressures. More positively, activity across all sectors of the Derbyshire commercial property market has remained robust.
The industrial market has continued to perform well, while the Derby office market has transacted more space this year than last year alongside achieving rental growth. The retail and leisure sector on the high street has had a positive year with over 200 viewings recorded and a double-digit number of transactions completed by FHP.
The industrial/warehouse market sub 50,000 sq. ft. in Derbyshire has remained constant throughout the last two years largely because it is underpinned by a lack of stock for both freehold and leasehold properties across Derbyshire and the wider Midlands. Capital values and leasehold values are increasing as a result of this. Enquiries remain strong especially for properties sub 10,000 sq. ft. which has proved more resilient through the difficult market as local/smaller businesses are less minded to pay attention to market speculation and uncertainty as they tend to focus on their own business matters.
My view on the office market is that more space has transacted this year which is positive and it is largely due to availability of better quality office space. A total of over 115,000 sq. ft. has been transacted, up from 90,000 sq. ft. in 2024. In 2025, FHP was pleasingly the top leasing office agent transacting over 40,000 sq. ft. The number of deals in the city centre has remained constant compared with 2024 at 25, alongside the average deal size remaining around 3,500 sq. ft.
Office trends seem to have settled over the past year with most employers finding the right balance between remote working and working in the office, with most employees working at least three days per week in the office. The focus for offices is very much on quality, office occupiers now expect the best quality space for their employees and landlords are continuing to invest in their properties to meet occupiers’ demand.
As a result of this, and the subsequent ability to offer high quality accommodation, we are seeing rental tones start to increase. FHP have seen this first hand having achieved a rent of £18.00 per sq. ft. on a detached office building in Pride Park. More generally, office rents have increased by an average of 13% from 2024 to £13.25 per sq. ft.
There is also a strong push to offer good quality office space in Derby city centre. I participated in the Round Table Debate discussing the feasibility of bringing new build Grade A office space into the city centre. Something that is much needed as it would act as a catalyst in the city centre as a large concentration of people will be working daily in the centre helping to bring life back to the high street through workers getting their lunch, having informal meetings in the coffee shops and having a drink after work. The surrounding areas would reap the benefits of having this offering and it will ultimately help attract more investment.
Moving onto the high street, Derby has continued to be a popular retail and leisure location throughout 2025 with FHP conducting a total of 216 viewing and transacting 24 deals. There has been plenty of activity across the sector with demand remaining for properties on the high street. I am hopeful that with the news of more investment coming to the city centre such as a new build Grade A office building alongside the latest developments such as the Market Hall and Valliant Live arena will continue to increase the demand in high street units and improve the quality of occupiers on offer.
In 2025, I have contributed further with landlord and tenant work picking up matters that range from office lease renewals at RTC Business Park in Derby to a rent review of a 10,000 sq. ft. trade counter unit in Stoke on Trent. This has helped me further my knowledge to all matters of commercial property alongside widen my geographical knowledge on locations and values further afield outside of the ‘Derbyshire’ patch.
Looking forward, I anticipate the market will pick back up in the New Year now we have certainty following the delayed autumn budget and the Christmas period having passed. I look forward to the coming year working across all sectors of commercial property and I am hopeful of a more positive and prosperous year.
For further information please contact Corbin Archer on 07929 716 330 / corbin.archer@fhp.co.uk.
ENDS
December 2025