Student accommodation boom adding to lack of office space, says surveyor
A leading office space surveyor has told TheBusinessDesk.com that the proliferation of student accommodation in Nottingham is contributing to the shortage of good quality office stock in the city.
After we broke the news yesterday that Archer House in Nottingham is set to be converted to a 167-bed student block, Thomas , surveyor in FHP’s Office and Industrial Team, told us that the rise and rise of offices being turned into student flats is “compounding” problem surrounding the lack of office space in the city.
Szymkiw said: “It is clear that student residential conversion market has taken off in Nottingham City Centre. Whilst this cannot be pinned down as the main factor in shortage of supply for office space – one of the main hindrances is the difficulties that arise with speculative developments — it has compounded the issue further.
“Much of the long standing vacant office premises have been converted, but it is important to mention we have not come across a development where office tenants have been evicted to be replaced by student flats.”
Jonty Green, sales and lettings Consultant at FHP Student Living, said that although there are fears that the student accommodation market is overheating in Nottingham, all signs suggest that the market will grow as investors are receiving high rents.
He added: “One example is the Bridlesmith Chambers flats which are achieving circa £6,000 per bed space per annum, that’s £120,000 per annum for the whole development. Plus, Nottingham has 75,000 students at both unis so there is also a huge supply of potential tenants; the council conducted a survey of all new build properties and occupancy is at 99%.”
Green said that unlike the link between Lenton and the University Of Nottingham, Nottingham Trent University has around 35,000 students but no historic student heart for its accommodation, and the city centre is increasingly being seen as the answer to this, with new developments such as Hydrogen meeting student’s growing demands and expectations for quality accommodation.
He added: “This does mean areas such as Radford, Forest Fields and Hyson Green, where Nottingham Trent students have previously resided, will see less students. The lack legislation for Houses of Multiple Occupancy (HMO) in NG1 together with the extension of the tram networks to the University of Nottingham suggests that the city centre is where the council wants student accommodation to be based.”
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