The East Midlands’ office market continues to reflect the wider property market. Many business occupiers are seeking freehold ownership rather than the traditional leasehold arrangements, with demand being fuelled by continuing low interest rates and lack of available supply. This is acutely highlighted by the region’s three city centres where freehold opportunities are more often secured by residential developers still seeking to cash in on the "City Living" concept, which shows little sign of abating as investors are still prepared to buy multiple units.

BK’s own involvement in advising one of the three selected bidders for the former Charles Street Police Station site in Leicester, which forms the initial phase of Leicester Regeneration's plans to facilitate the development of a city centre office core totalling 500,000 sq ft, has highlighted the need to balance working and living within city centre settings.

Location of key companies and their employees in out-of-town business parks may relieve inner city congestion but does little to add to the vibrancy and economic dynamics of a city centre where people seek to take advantage of living, working and relaxing within close proximity. The Charles Street development is seeking to kick start such a culture change in the hope that Leicester can be redefined from a city with too much low quality second-hand office accommodation to a natural choice for companies seeking to locate to the region, particularly public sector organisations from the costly South East.

A mixed use scheme comprising offices, retail and residential will have to go it alone until the second phase is commenced and improvements to the surrounding environment completed, such as the demolition of St George's Tower. But Leicester must deliver on this regeneration project to redefine is profile, build on the Lyons Review and keep on board its potentially sceptical citizens.

Nottingham currently benefits from the prime space available at Cumberland Place, The Chapel Quarter and NG2 where Edwards Geldard solicitors is the latest professional practice to relocate to new build office accommodation which enables a more open-plan style of working. The Eastside Regeneration project has ambitious plans to shift Nottingham's business core and will certainly need to attract inward investment from organisations considering the region as a potential relocation possibility.

Derby continues to deliver quality office accommodation at Pride Park, but as a location it is on the fringes of the city centre, and whilst being close to the ring road and train station, employees are not connected to the retail and leisure environment within Derby. The Derby cityscape masterplan seeks to address the connectivity of work, living and leisure in the hope that the interdependency between the areas can be increased and prevent economic leakage to other competing locations.

The future challenge for our key regional city centres is to deliver a quality office product that is able to provide the additional support framework for employees. Just trading off a central location close to the M1 could see the region missing out on attracting new companies and organisations.