Goodman targets tenants for Leicester office development

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by Lin Freestone

Goodman, the international property group which owns, develops and manages office and industrial space, officially launched the final phase of a £25m regeneration project in Leicester at the end of October.

The final phase – Two Colton Square – comprises 55,040 sq ft of high quality office and leisure space, spread across four floors. Located in the New Business Quarter, Colton Square is leading the way in Leicester’s city centre regeneration where it is the first Grade A speculative office development to take place in more than a decade.

The scheme has already attracted high profile regional businesses Cooper Parry and Freeth Cartwright to the first phase of the development – One Colton Square - completed in May 2007. However, it is understood that more than half of the 50,000 sq ft building remains empty.

Set on the site of a former police station on Charles Street, the development of Two Colton Square involved restoring and retaining original features of the building, which is Grade II listed.

James Raven, Goodman’s UK development director, is talking to a number of potential tenants at the moment. He said that everyone is being cautious and Goodman will take a pragmatic approach to potential occupiers.

In order to attract tenants to the 55,000 sq ft second phase of the development, Goodman has not ruled out lowering the rent from £16.50 per sq ft to a figure nearer to the average office rental price in Leicester of approximately £13 per sq ft.

Colton Square is part of the Arlington Business Parks Partnership fund, which is managed by Goodman. Other schemes Goodman has in the region include Birmingham Business Park and Eastside Locks in Birmingham City Centre.

Leasing agents for the scheme are the Leicester offices of Innes England and Lambert Smith Hampton.