Retail

Q1 review: retail resilience and opportunities in Nottingham

As we move into April, we caught up with our retail property specialist Alicia Lewis to gauge how the sector has fared in the first quarter of 2025.

Nottingham’s retail sector continues to demonstrate resilience despite the broader economic uncertainties. The first quarter of the year showcased steady demand, particularly in the city centre, while suburban retail spaces also maintained strong interest from both national and independent businesses. However, with economic pressures looming, some occupiers are proceeding with caution when making long-term commitments.

The demand for prime retail spaces

Retail activity in the second quarter has been driven by a high demand for well-located, high-quality retail units. Independent businesses and expanding national brands remain key players in this landscape, seeking flexibility in lease terms, attractive incentives and competitive rents. The experiential and convenience-led retail sectors continue to thrive, reflecting consumers’ growing preference for immersive and accessible shopping experiences.

Success stories and market movements

The vibrancy of Nottingham’s retail sector is evident through deals that have brought valuable additions to key locations.

Mapperley Top: I’ve recently successfully transacted a perfect addition to Mapperley Top as we continue to support local occupiers in expanding their businesses.

Lace Market: I’ve also completed a deal in the Lace Market to a local barber, which has brought about full occupancy of the building, which we manage.

Navigating market challenges

Looking ahead to Q2 and the rest of 2025, we anticipate sustained demand for prime retail locations, while secondary retail spaces may experience longer void periods. Economic factors such as rising interest rates and cost pressures could influence occupier decision-making, prompting retailers to prioritize value and flexibility in their leasing strategies. Simultaneously, the demand for mixed-use developments and last-mile retail logistics is increasing, presenting fresh opportunities for landlords and investors.

Future opportunities and strategic adaptation

One of the most promising areas for retail evolution lies in the repurposing of underutilised spaces. Mixed-use schemes incorporating leisure and office components offer a compelling solution to optimise retail assets and enhance footfall. At NG, we are excited about upcoming projects that will leverage these trends to create dynamic, multi-functional spaces that cater to the evolving needs of businesses and consumers alike.

As Nottingham’s retail landscape adapts to shifting economic conditions and consumer behaviours, strategic planning and innovative approaches will be key to ensuring continued growth and resilience in the sector.