With the first quarter of the year completed, Harry Gamble, surveyor at FHP Property Consultants, looks at how 2026 started for Derby’s commercial property market.
Here at our Derby office, as we rolled over into the New Year, we were hit with an unexpected demand across industrial, office and retail.
We saw high enquiry levels, increased viewing numbers and deals being concluded.
We found that businesses we had been talking to six months prior come back into the frame and start to make decisions.
Across all three sectors, we have been extremely busy with 32 deals completing across the first three months of 2026.
January and February proved to be very active months, and we are hoping that this will set the precedent for the forthcoming year.
In March, we completed on a number of lettings and sales, but the activity across telephone and e-mail enquiries slowed down, which can be linked to the ongoing tensions in the Middle East.
We hope that the current activity within the market continues through, but it is hard to predict the next three months.
Within the retail sector, one of the standout transactions for us was the sale of The Royal Buildings, one of Derby city centre’s landmark buildings situated in Victoria Street.
The Royal Buildings comprises 22,062 sq ft and marks a major investment sale within the city centre.
After a positive 2025 in Derby’s office market, the trend has continued into 2026 with a number of deals completing.
Notably, Pentagon House, a 30,000 sq ft office building just off the A61 has now reached 100% occupancy with an occupier taking a second-floor wing of circa 4,000 sq ft for a period of 10 years.
We are also pleased to launch The Exchange, a new grade office scheme situated on Pride Park where we can offer build to suit opportunities from 10,000 sq ft to 45,000 sq ft on either a leasehold or freehold basis.
Finally, the industrial market has seen a variety of deals from 500 sq ft to 66,000 sq ft.
Ascot Drive has proved to be positive with 5,814 sq ft of prime trade counter space being recently let to Lincs Electrical Wholesalers Ltd.
Off the back of this we have received two further instructions, one being Unit 6, Newmarket Court comprising 2,895 sq ft and the second being the Former Jewson site of roughly 1.63 acres to be sold on a long leasehold basis.
Pleasingly, we are seeing deals complete and businesses looking for their first or even next step.
The majority of the deals are within the sub 5,000 sq ft industrial market but we have transacted the letting of 66,000 sq ft in Alfreton based on a 6.4 acre site.
As I approach three years at FHP, it certainly feels that this year has been much more positive with the high levels of enquiries and viewings.
I have now completed a number of lettings and am starting to deal with freehold sales across all sectors.
On a personal note, February proved to be very successful as I completed seven deals and placed our properties under offer.
I hope that viewing numbers will stay positive and businesses will still be anticipating their next move.
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