Harris Lamb Blog – The Squeeze on new warehouse and employment space.
25th July, 2011.
The squeeze on new warehouse and employment space.
By Neil Slade, Director, Commercial Agency.
Whilst the UK and European economies continue to face daily challenges that spiral down to adversely affect business confidence here in the Midlands, sectors of the regional property market are standing firm with the supply of high quality warehousing and take up of land for bespoke new build opportunities gradually reducing and increasing respectively.
The property market is currently holding its breath over news of a prospective 800,000sqft Jaguar Land Rover engine plant being signed up at the 226-acre i54 site in Wolverhampton that, if confirmed, will not only generate approximately 1000 jobs but also bring welcome news to a region that has suffered more than most during the recession and already digesting major casualties including MG Rover, HP Sauce, Alstom and LDV. Spin off requirements will no doubt filter through that will further buoy the property market and wider economy.
Indeed, we are experiencing a sense of urgency within certain industries, particularly some of those supporting the ‘big beasts’ of the Midlands, such as Rolls Royce, Jaguar Land Rover and JCB.
With news last week that Amazon has completed on a 700,000sqft speculatively built unit on G Park, Rugeley, the take up of prime industrial and warehousing space is quickening, this following a flurry of activity that has seen but a handful of speculative new build distribution warehouses remaining in the Greater Midlands.
As expected, the market is duly benefitting by way of a slow resurgence of Design & Build enquiries and deals as a result.
By means of example, new ‘build to suit’ opportunities for M&S (approx 900,000sqft), B&Q (approx 800,000sqft), Peugeot (approx 200,000sqft), MOOG (approx 200,000sqft), Europa Logistics (approx 150,000sqft), Selco (approx 40,000sqft) and Eurofins (approx 20,000sqft) have been announced, with other deals expected to be concluded in due course on sites that have effectively been mothballed over recent years.
The timing of speculative build property is an interesting topic, but with a further reduction in prime supply and a hoped upturn in occupier sentiment going forward, many of the redundant sites in the Midlands could well see activity in the near future and prove to be the catalyst for a wider upturn in the property market and regional economy.
We are advising a number of companies negotiating pre-lets at the moment and on the opposite end of deals for developers too. The market for us has plenty of exciting challenges with the driver being more deals generally.
For advice and assistance on all aspects of Commercial Property, Neil would be happy to help. He can be reached on 0121 455 9455 or via email: firstname.lastname@example.org.
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 thier employees.