A remarkable transformation in fortunes for Capability Green Business Park

A Bedfordshire office park has bounced back to reach almost full capacity as more and more occupiers, including major airlines, agree deals to make it their new business base.

In the past 12 months, over 225,000 sq ft of office space has been transacted at Capability Green in Luton - representing a dramatic transformation in the fortunes of the site following significant investment in refurbishment and new facilities by the landlords.

The end of 2024 saw a 4,250 sq ft letting completed by Kirkby Diamond and the sale of a 3,056 sq ft freehold purpose-built office building, marketed at £825,000.

Airlines from nearby Luton airport are also making it their home, with EasyJet and Tui agreeing deals on office space at the site.

Matt Bowen, partner and head of commercial agency at Kirkby Diamond, said: “Capability Green is a fantastic success story. It has enjoyed a remarkable transformation in fortunes since the post-pandemic downturn and the shift to working from home.

“The turnaround demonstrated in the past 12 months shows how the relationship between landlord and agent can work to ensure that, in challenging market conditions, delivering the right product to the market is key. Where the basics remain attractive, investment into the quality of the space offered can reap huge rewards.”

Positioned on the outskirts of Luton and just over one mile from the M1 and Luton airport, Capability Green – one of the country’s premier business parks - was built in the late 1980s and comprises an office business park over 85 acres which attracted some highly prestigious companies.

“However, with changes in working practices following Covid, the general downturn of the office market and buildings in need of a refurbishment, by the end of 2023 occupancy levels unbelievably dipped below 50 per cent,” said Matt.

“Landlords during late 2023 understandably were concerned about potential void periods but, working with agents’ advice to invest in refurbishing space and upgrading where possible, new life and energy was beginning to return. This is despite large transactions in the park being sporadic, deals such as Kirkby Diamond acquiring the first floor at Cedar House – a total of 7,651 sq ft for a client taking place. The dramatic transformation in Capability Green’s fortunes is now almost complete.”

Kirkby Diamond relocated its own Luton office to Capability Green, recognising the strategic location and other benefits, completing on a 2,082 sq ft office in 2023.

Matt added: “Whilst the challenges persist in the office market generally, it is encouraging to see there are successes to be had, and we enjoy calling Capability Green home for our own Luton office.”

At the start of last year, several significant deals took place, including the letting of 725 Capability Green, which offers 6,156 sq ft of office space. This was followed by two major transactions that helped maintain momentum, with an additional 37,000 sq ft secured by joint agents Bray Fox Smith.

In February, four lettings totalling over 62,000 sq ft highlighted a notable turnaround in the market. Among these, Kirkby Diamond completed a 7,944 sq ft first-floor letting at Mulberry House, having acquired the ground floor space (7,694 sq ft) prior for another tenant.  March saw a further letting of 3,880 sq ft, while the summer brought a flurry of activity, with four additional deals totalling more than 100,000 sq ft.

Matt added: “With these recent deals, we have proved once again that Kirkby Diamond has the market reach to offer comprehensive office agency services from our five offices on the North Home Counties M1 corridor.”