£10.50/sq ft
Prime rent (East Midlands)
Derbyshire
Industrial and Logistics Property Finance in Derby
Funding for industrial units, warehouses and multi-let estates in Derby: commercial mortgages, acquisition finance, bridging, development, mezzanine and long-term debt.
Written by Matt Lenzie Founder & Principal Broker · 25 years arranging commercial property finance
5.25%
Prime yield (East Midlands)
7.08%
UK logistics vacancy
2,514
House sales, 12m (Derby)
Industrial Property Finance arranges funding for industrial units, distribution warehouses and multi-let estates across Derbyshire. Whether you are buying a unit for your own business, refinancing a multi-let estate, or funding a yard, a trade counter or a refurbishment, we model the deal for your Derby property and place it with the right lender. Derby sits in Derbyshire, within the East Midlands industrial and logistics market.
Every facility we arrange is grounded in the market evidence. Prime industrial and logistics rents in East Midlands run to £10.50/sq ft (CBRE, UK Logistics Q4 2025, Q4 2025), with prime equivalent yields around 5.25% (CBRE, UK Logistics Q4 2025, Q4 2025). Prime rents in the region grew 3.2% over the year (Knight Frank, UK Logistics Market Dashboard, 12 months to Dec 2025). We then underwrite the specific Derby property, its income and its occupier demand, on its own merits.
Commercial mortgages on Derby industrial units
A commercial mortgage is the core way to buy or refinance an industrial unit in Derby. For investors, lenders size the loan against the rent: typically up to around 65 to 70 percent loan to value, tested so the net rental income covers the interest with a clear margin, with the tenancy schedule, the estimated rental value and the re-letting depth of the Derby market all part of the assessment. For owner-occupiers buying their own premises the loan is underwritten on the trading business instead, its accounts and its debt service cover, and can reach around 70 to 80 percent for established firms. Terms run from 5 to 25 years. We place each facility with the lender that prices Derby industrial property best across Derbyshire.
Warehouses, multi-let estates and trade counters across Derbyshire
Each property type is underwritten differently. We arrange finance for distribution and logistics warehouses, multi-let industrial estates, trade counters, workshops and light industrial units, hybrid and flex space, urban and last-mile logistics and open storage yards in Derby and across Derbyshire. A let distribution warehouse on a long lease to a single covenant, a fully let estate of small units with dozens of SME tenancies, and a vacant workshop bought at auction are credit-assessed in very different ways, and knowing which lender backs each format is the work we do before a deal reaches credit. Multi-let estates carry short leases that re-gear to market quickly, which lenders read as reversionary income, while distribution sheds and trade counters lean on the covenant strength and unexpired term of the tenant.
Finance we arrange in Derby
- Industrial and logistics commercial mortgages
- Owner-occupier industrial mortgages
- Industrial and logistics acquisition finance
- Industrial bridging loans
- Industrial development and refurbishment finance
- Industrial and logistics refinance and equity release
- Industrial and logistics portfolio finance
- Mezzanine, equity and JV funding
How much you can borrow against Derby industrial property
On an industrial investment in Derby, a commercial mortgage usually reaches around 65 to 70 percent of value, so you would budget for equity of roughly a third of the price plus stamp duty and costs. The figure is driven by the quality of the income, the tenants, the unexpired lease terms and the condition of the unit, not the postcode. Vacant or part-let property is funded differently: bridging finance secures an auction purchase or a unit awaiting letting, typically to around 70 to 75 percent of value from around 0.75 percent per month, and development or refurbishment finance funds works to around 65 to 75 percent of cost, with mezzanine stretching the stack where the scheme supports it. Interest rates depend on the lender, the leverage and the income profile, so we quote them deal by deal rather than as a headline rate. We size the right facility, rate and equity requirement for your Derby deal.
Where industrial property trades in Derby
Derby hosted Britain's first water-powered silk mill in 1717 and sits at the southern end of the Derwent Valley Mills World Heritage Site, gaining city status in 1977. Derby is served by A50, A38 and A52, the kind of road access that drives occupier demand for industrial units and supports the rents an estate can sustain. Occupiers here draw staff and customers from across the town, from Allestree, Alvaston, Chaddesden and Littleover, the catchment a lender weighs when it considers re-letting risk. Planning applications for industrial use, including change of use within Class B2, B8 and E(g), are determined by Derby City Council. Multi-let landlords with estates in or around Derby include Indurent, a sign of institutional confidence in the catchment. Indurent Park Derby and Indurent 129 at Dove Valley Park.
Industrial demand signals in Derby
Development activity is visible in the planning register: 4 recent applications for industrial and logistics use in the Derby area include 26/00568/FUL (Continued use of the former Pizza Hut building as a car sales hub, including the retention of extensions, alte...). We track industrial, logistics and open storage planning applications across more than 100 UK council portals. As a local-economy signal, Derby recorded 2,514 residential transactions in the last twelve months on HM Land Registry price paid data, at a median price of £205,000; that is housing-market context, not industrial volume, but it speaks to the depth of the local economy that fills small units. Nationally, industrial and logistics vacancy remains moderate at 7.08% (CBRE, UK Logistics Q4 2025, Q4 2025), against forecast rental growth of 2.7% (Savills, Big Shed Prospects 2026, 2026 forecast).
Derby industrial market profile
- Planning authorityDerby City Council
- Road accessA50, A38, A52, A6
- Landlords presentIndurent
- House sales (12m)2,514 · median £205,000
Location facts and Land Registry data. Market figures shown are national or East Midlands-level, not Derby-specific.
Recent industrial planning applications
- 26/00568/FUL · 18 May 2026Continued use of the former Pizza Hut building as a car sales hub, including the retention of extensions, alterations to...
- 26/00517/DISCLB · 22 April 2026Discharge of condition 13 (New Staircase) of previously approved application no. 23/01109/LBA - Restoration, alteration ...
- 26/00488/DISC · 14 April 2026Discharge of condition 12 (Travel Plan) of previously approved application no. 21/00585/FUL - Erection of Industrial Uni...
Source: council planning register (Idox). A development-activity signal, not our applications.
The East Midlands industrial and logistics market
Derby is a prime industrial catchment within East Midlands. Dense occupier demand, constrained land supply and competition from last-mile and trade users support strong rents on well-let estates, and lenders compete hardest for stabilised multi-let income here. Vacant or secondary units are funded on more cautious terms, with the business plan and the borrower doing the work.
The East Midlands is the UK's Golden Triangle logistics heartland, anchored on the M1, M6 and M42 confluence and East Midlands Gateway, and carried the highest share of national big-box take-up in 2025.
The region holds the UK's highest availability after a heavy pipeline, lifting vacancy near 9.7%, but Savills expects this to fall back towards 7.5% as space is absorbed; central reach keeps it a primary national distribution location.
Market commentary and figures for East Midlands are drawn from CBRE (UK Logistics Q4 2025, Feb 2026); Knight Frank (UK Logistics Market Dashboard, Jan 2026); Savills (Big Shed Prospects 2026, Dec 2025).
Sources and methodology
Industrial and logistics market figures are published nationally or regionally, not per town, so the rents, vacancy and yields on this page are presented as context for a Derby appraisal and attributed to their sources (CBRE, UK Logistics Q4 2025). Town-level facts are different: road access, the named estates, the planning authority, the landlords present, and the Land Registry housing-transaction data are genuinely local and sourced. We do not publish a Derby-specific rent or yield as if it were measured. Nationally, UK big-box logistics take-up reached 25.6m sq ft in 2025 (CBRE, UK Logistics Q4 2025, 2025).
FAQ
Industrial and logistics finance in Derby: common questions
Can you get a mortgage on an industrial unit in Derby?
Yes. An industrial unit in Derby is financed with a commercial mortgage rather than a residential loan. We arrange them for owner-occupiers buying their own premises, underwritten on the trading business, and for investors buying let units or estates, underwritten on the rent, typically to around 65 to 70 percent loan to value, and we place each one with a lender that backs the sector.
How much deposit do I need to buy an industrial unit in Derby?
Most lenders advance around 65 to 70 percent of value on a let Derby industrial investment, so plan for equity of roughly 30 to 35 percent of the price plus costs. Established owner-occupiers can often reach around 70 to 80 percent against their own premises. A vacant or short-income unit is funded on more cautious terms, often via a bridge first.
What are Derby industrial finance rates and terms?
Rates depend on the lender, the leverage and the income profile of the property, so we quote them deal by deal rather than as a headline. Indicatively, term debt starts from around 6 percent, development finance from around 8 percent and bridging from around 0.75 percent per month, with terms from months on a bridge to 25 years on a commercial mortgage. For market context, prime industrial and logistics rents in East Midlands run to £10.50/sq ft (CBRE, UK Logistics Q4 2025, Q4 2025).
Can I fund a multi-let estate or a yard in Derby?
Yes. Multi-let industrial estates are funded on the rent roll, with the lender testing interest cover against the net income and the manager's ability to run dozens of small tenancies; open storage and industrial yards are funded against the land with more conservative leverage, typically around 55 to 65 percent. We arrange both routes across Derbyshire.
Funding an industrial unit in Derby?
Send us the outline and we will come back with a view on fundability and likely terms within one working day.