Harris Lamb Blog – 29th March
29th March, 2011.
Property Disposals to the Manufacturing Sector.
By Neil Slade, Commercial Agency.
With the news that UK manufacturing is growing at its fastest pace in 16 years; this is seemingly assisting with the recovery of the Midlands property market for industrial and warehouse units.
Here at Harris Lamb we are seeing a significant increase in property disposals to manufacturers. A few weeks ago I talked about the automotive sector particularly, however, we are ‘doing deals’ in the industrial sector around the Midlands to companies in diverse areas, from renewable energy to pharmaceuticals to precision engineering.
The Office for National Statistics has just announced manufacturing output up by 6.8% on January 2010. With Bank Base Rate unaltered at 0.5%, this has given both the economy generally and the manufacturing sector particularly the headroom to consolidate and now grow.
From our Stoke and Birmingham offices primarily, we have been witnessing disposals to a range of manufacturing companies at an encouraging rate.
We currently have somewhere approaching 600,000 sq. ft. of manufacturing requirements, where we are acting for clients looking for space. The return of a market in providing design and build turnkey packages for occupiers is not one that many would have predicted barely 12 months ago.
DTZ research shows 20% of the currently available industrial stock is prime. The research also showed 6.9 million sq. ft. of take up in 2010 and 990,000 sq. ft. being disposed of in the final quarter of 2010.
The significant figure from the research is that year on year there are overall reductions in available stock now taking place with 27.1m sq. ft. available in Q4 2009 and 25.3m sq. ft. available a year later. With speculative construction looking some way off, the reduction in available space will at some stage see a firming effect on rentals and capital values.
Whilst take up of industrial and warehouse space in the Midlands is continuing to be helped by manufacturing and associated third party logistics partners the region will see plenty of follow on benefits.
If you would like to speak with Neil about any issues raised in his blog, 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.