The healthy state of demand for Derby's industrial and logistics market has been further underlined by confirmation that a local NHS Trust have leased a 48,000 sq.ft warehouse in Derby.
The deal put together by Chris Keogh, Associate at commercial real estate experts Salloway Property Consultants will see Nottinghamshire Healthcare NHS Foundation Trust take a new 5 year lease of the Gosforth Road unit which is owned by Derby based Ivygrove Developments.
Mr Keogh, who is responsible for the proactive marketing of a portfolio of commercial instructions at Salloway, commented:
"Securing a UK Government backed tenant on full repairing and insuring terms feels like a job very well done for a building that had previously stood vacant for a number of years prior to our involvement."
"The lease rate achieved of £4.40 per sq.ft represents good value for both the landlord and tenant. Ivygrove Developments have agreed to upgrade the building to a modern standard, undertaking a substantial fit out which will meet the modern needs of the Trust."
The Trust, who are a major provider of mental health and community healthcare services to the people of Nottinghamshire, will be using the facility for back office functions.
Reflecting on the deal Richard Blount, Director at Ivygrove Developments explained:
"Gosforth Road is a great example of us taking a tired building and bringing it back to life with appropriate investment - something that is a real strength of ours."
"In this case, we probably invested a little more than necessary in order to ensure the Trust were more than happy, but the result is something Ivygrove can be very proud of."
Completion of the NHS Trust lease comes quickly after Salloway announced that SGS Engineering had agreed to purchase a new 65,000 sq.ft warehouse at Westside Park.
The volume and scale of recent market activity lead Mr Keogh to conclude:
"The local warehouse market is witnessing high levels of demand for both leasehold and freehold assets. The buoyant levels of interest should give landowners confidence that commitments to start development projects will be rewarded with strong returns."