Commercial Property ‘Hotspots’
19th March, 2012.
Commercial Property ‘Hotspots’
By Andrew Lamb, Investment.
I want to gather a few pieces from my colleagues on Property hotspots, more particularly commercial property locations that are in demand but also perhaps where residential land is trading at quite ‘aggressive’ values.
I thought I would start off by looking at a couple of towns where we are experiencing tenant and occupier demand that is ‘beyond the norm’ in the warehouse and industrial market.
The subject of property ‘hotspots’ is something topical across all sectors at the moment and relevant to the B1, B2 and B8 market was a recent piece of research by Lambert Smith Hampton, where they said that a lack of grade A space in the West Midlands’ industrial and distribution market will push up prime space rents this year.
According to the latest research from Lambert Smith Hampton, available Midlands grade A space dropped by 18% in 2011. Rents also declined slightly over the year – significantly apart from in Coventry where they remained stable – but this trend is unlikely to continue as remaining prime space is snapped up.
Lamberts also said that “lack of stock is expected to continue to have an impact on overall take-up levels, given the lack of available buildings for the largest requirements. As a result, large-scale requirements are now likely to be satisfied by design-and-build options. We expect this to increase, particularly in core distribution locations such as the M6/M42 and A38 corridors”.
Two of the areas we have seen a real spike in demand with very little available space is Redditch and Coventry.
The issues with Redditch, and to a degree in adjacent Bromsgrove too, are the benefits of close proximity to Birmingham; plentiful labour good motorway connections and what also seems to be increasingly a factor, is proximity to some fast growing and dynamic manufacturing operations in North West Warwickshire. There is little land and even less available stock of good sized employment units.
The other location where we have seen a disproportionately high concentration of enquiries is in Coventry. We are increasingly dealing with more and more employment and distribution space in Coventry much of which is having to look at design and build due to lack of good quality existing stock.
With the availability of exiting stock continuing to reduce, the quality of what remains has begun to decline in many areas and the drive for quality and exacting requirements for buildings that Companies want to acquire, means new build may now be the only option.
At Harris Lamb we can help Companies to find suitable opportunities and are able to ‘fettle out’ many off market opportunities that people may not be aware of. If you’re having difficulty finding what you want, then give us a call on 0121 455 9455.
Disclaimer: The views expressed within this article or weblog (‘blog’) are the personal views of the contributors and authors only and do not necessarily reflect the views of any named companies or their employees.