THE VALUE of transactions across the region broke through the £2 billion mark last year, with leading economist Mark Berrisford-Smith describing the figures as ‘a positive indicator of confidence in the region’s economic prospects’.

The data, which was collected and analysed for our Market Insite 2025 report, noted the huge rise in investment was mostly sparked by industrial space deals.

The report’s findings show that investment was strong across the East Midlands in 2024, at a total of £2.02bn – almost double the previous year’s figure. In other findings:

• The alternatives market – which looks at properties beyond office, industrial and retail – rose 36% from £111.8m in 2023 to £152.7m
• The office and retail sectors remained at similar levels of £83.8m and £262.2m respectively
• Investment in the industrial sector stood out, with £1.5bn invested into the market, more than doubling 2023’s figure of £733.7m.

We revealed our findings to hundreds of industry professionals at three events across a week in Nottingham, Leicester and Derby, as well as also hosting a Birmingham event to discuss West Midlands investment.

The events featured a speech by independent economist Mark Berrisford-Smith, formerly of HSBC, who said he was ‘optimistic that the UK’s economy will soon awake from its present slumber’.

Detailing his insights before the event, Mark said: “The stage is set for three interest rate cuts in 2025, which will not only alleviate pressures on indebted businesses and households but also reduce financing costs for those looking to boost investment. For many businesses, however, the bigger immediate challenge to growth is the downbeat mood of consumers.

“Although the so-called ‘cost of living crisis’ is well behind us, people remain distinctly uncertain about the future and so prefer to build up savings rather than splashing their cash. Yet at the same time it’s encouraging that there has been solid growth of capital spending by businesses during the past year or so, which may presage the long-awaited improvement in productivity.

“I’m also heartened by the recent change in tone by the government, with the Chancellor and others starting to talk up opportunities rather than just highlighting problems.”

Innes England’s overview of the market is broken down for each region, revealing that Leicestershire had the largest share (33.9%) and reached its highest investment in ten years, achieving £649m.

This was largely down to its industrial sector being bolstered by the completion of private equity group Lone Star’s acquisition of East Midlands-based property business Charles Street Buildings for approximately £570m. Known as Project Tiger, £390m of the sum related to 15 multi-let industrial estates around Leicestershire, totalling about 4.5m sq ft of industrial space.

Meanwhile, Nottinghamshire’s investment market rose almost ten per cent to £369.9m from £336.6m in 2023, bolstered by the Industrial sector which accounted for 45% of the total.

Nottinghamshire also experienced increases in the office and alternatives markets, which rose to £48.7m and £97.3m respectively, highlighting keen Investor interest in the Purpose-Built Student Accommodation market.

Meanwhile, investments in Derbyshire also more than doubled, rising from £128.8m to £258.2m. The bulk of this increase came again from industrial, with prime rents rising some 44% over the last four years, and secondary rents growing 47% over the same period.

Overall, investment levels were up across the board against all East Midland regions’ five-year averages.

Matthew Hannah, our managing director, said: “Delighted to be back once again hosting our industry-leading Market Insite events, especially when the outlook for the region’s commercial property sector is so positive with over 500 delegates registered.

“While the economic landscape may feel like it’s fraught with difficulties, this is proof that commercial property investors in the East Midlands are demonstrating confidence in the future.”

To review the full East Midlands commercial property market, and the West Midlands Investment data, download Innes England’s Market Insite 2025 report here: https://innes-england.com/wp-content/uploads/2025/02/Market-Insite-Brochure-2025.pdf