Retail

Nottingham retail market H1 2026: Signs of a resilient high street

The first six months of 2026 have seen encouraging levels of activity across Nottingham’s retail market, with demand remaining resilient for well-located high street and neighbourhood retail units. NG Chartered Surveyors’ latest transactional data shows a significant increase in completed retail lettings compared with the same period in 2025, alongside growth in transacted floor space and headline rental values.

With the first half of 2026 now behind us, we’ve reviewed our own retail transactions across Nottingham to understand how the market has performed on the ground, alongside the wider trends shaping the city’s retail sector.

The headline numbers

• Completed retail lettings: 7 transactions in H1 2026, up from 2 in H1 2025
• Floor space transacted: increased from 905 sq ft to 6,184 sq ft
• Headline rents: increased from £15,400 per annum to £107,000 per annum
• Nottingham retail vacancy rate: 2.2%
• Asking rents: increased by 0.7% year-on-year

Taken together, these figures point to a market that is experiencing stronger transactional activity, stable occupational demand and continued confidence in well-located retail space.

Transactional activity: A stronger start to 2026

In-house transactional data supports a notable improvement in activity compared with the first half of 2025. We completed seven retail lettings during Q1-Q2, compared with two transactions during the same period in 2025, representing a significant increase in take-up.

Floor space transacted increased from 905 sq ft to 6,184 sq ft, whilst headline rents rose from £15,400 per annum to £107,000 per annum, demonstrating a significant uplift in market activity and rental growth across the sector.

Demand remains focused on quality retail locations

Across our completed transactions, we have seen continued demand for smaller high street units in well-performing locations, particularly from independent businesses across hospitality, specialist retail, beauty therapy and leisure.

This mirrors the wider Nottingham retail market, where vacancy rates have fallen to 2.2% and asking rents have edged upwards by 0.7% year-on-year, illustrating a balanced market with steady occupational demand rather than speculative rental growth.

National occupiers continue to drive momentum

Occupier demand across the wider market continues to be driven by value-led retailers, supermarkets and leisure operators, with notable brands such as PureGym, Tesco Express, Poundland and Boyes continuing to provide momentum.

Demand for prominent, footfall-focused and accessible locations continues to drive activity amongst national retailers, with one of the largest recent deals seeing Lidl take approximately 17,000 sq ft at Trinity Square Shopping Centre.

Whilst the independent hospitality sector continues to dominate localised high streets, leasing activity across the city centre also remains buoyant. Vacancies created by operators such as TGI Fridays have provided opportunities for brands including Wingstop and Rudy’s Pizza to secure prime locations.

Looking ahead: Supply constraints supporting the market

Looking ahead, supply remains constrained, with very little new retail stock currently under construction. This should continue to support occupancy levels across established high streets and neighbourhood parades.

Whilst occupiers remain cost-conscious, the market continues to reward well-located units offering realistic rental levels and flexible accommodation.

Overall, Q1-Q2 2026 has delivered a positive start to the year for the out-of-town and high street retail market. Increased transactional activity within our own agency department, combined with stable market fundamentals across Nottingham, provides confidence that demand for quality neighbourhood retail space is likely to remain resilient throughout the remainder of 2026.

What this means for landlords and occupiers

For landlords: Demand remains strongest for well-located, sensibly priced retail units that offer flexibility and good prominence. With limited new supply entering the market, landlords with quality accommodation are well positioned to attract occupiers.

For occupiers: Whilst rental growth remains relatively modest across the wider market, competition for the best-located units continues. Early engagement and realistic negotiations remain key to securing suitable retail space.

Frequently asked questions

How has Nottingham’s retail market performed in H1 2026?

NG Chartered Surveyors completed seven retail lettings during H1 2026, compared with two during the same period in 2025, indicating a significant increase in transactional activity.

What types of retail units are seeing the strongest demand?

Demand remains strongest for smaller high street and neighbourhood retail units, particularly from independent operators within hospitality, specialist retail, beauty and leisure.

Are retail rents increasing in Nottingham?

Headline rents across our completed transactions have increased significantly, whilst wider Nottingham asking rents have risen by approximately 0.7% year-on-year, reflecting steady occupational demand.

Talk to NG about the Nottingham retail market

NG Chartered Surveyors advises landlords and occupiers on retail agency, lease advisory, valuations and investment across Nottingham and the East Midlands.

If you’re considering retail or mixed use property options in the current market, get in touch with our retail team.