A new £8.96 million four-storey city centre office is to be constructed by the Council at One Cathedral Green on Full Street to satisfy continued demand from businesses.
The new office, with basement car parking is planned to be delivered by autumn 2020 and the whole building will be let as an innovative model of managed workspace.
The Council has agreed a deal with developers Wilson Bowden who own the site and a third party who has agreed to take a lease of the whole Grade A office building.
The investment from the Council also enables the simultaneous construction on the same site of new offices for UNITE the Union who will be buying the adjoining building for a new regional headquarters. When complete, the entire development will safeguard existing jobs and create as many as 180 new city centre jobs.
The Council, as part of its regeneration strategy, has decided to take this step as additional Grade A office development is needed to increase business confidence and commerce in the city centre.
Grade A offices are the most prestigious buildings competing for premier office users. Buildings have high quality standard finishes, state of the art systems, exceptional accessibility and a definite market presence.
The Council has pledged to fill the gap left by developers in this area whereby market analysis reports have demonstrated that the main reasons for continued failure by the market to deliver new city centre offices is the insufficient return on investment for developers and rigid lease terms required by traditional investors.
Previously the Council has provided smaller managed workspaces, at seven locations across the city managed by Connect Derby. These were created to encourage the growth of micro businesses, entrepreneurs and Small and Medium-sized Enterprises. This development will complement the Connect Offer and increase the supply of larger Grade A office space, supporting adjacent regeneration initiatives such as the New Assembly Rooms and fulfilling a key objective of the Derby City Centre Masterplan.
Cabinet will be asked to approve expenditure and include the project in the regeneration capital programme with construction expected to start in summer 2019 and be completed in autumn 2020.
Cabinet Member for Regeneration and Public Protection, Cllr Matthew Holmes, said: “There is a defined need for larger office spaces in the city centre. This new model of office development will enable business to grow, attract new occupiers and enable commerce to thrive. The project will complete the regeneration of a key mixed-use development and generate new jobs in the city centre.
“With this scheme, the Council are driving new commercial development in the city centre, maintaining regeneration momentum and unlocking the potential to create a vibrant workplace environment for an expanding business community.”