What is the market view of Midlands Industrial Agents?
Not the most scientific of studies I will admit but the Industrial Agents Society (IAS) for the Midlands is a body of the principal warehouse and industrial property agents’ active in the region. I am a member of the IAS and 2013/2014 Worcestershire EGi ‘Dealmaker of the year’.
The IAS had its annual ‘Christmas’ get together on 4 December when everyone got together for a social evening of market news, gossip and a few drinks. It is a good time to share views on what we think may happen over the next 12 months too.
Firstly, the consensus was that we have just had a ‘great’ year. The glowing terms in which pretty much everyone described the market over the last 12 months may come as a surprise to some. The basis of such a warm view on business was that property lettings and sales in the warehouse and industrial markets from Telford to Ashby and Stoke on Trent to Banbury had been very strong. Occupier demand is a lot better than it has been for probably 6 years.
Whilst incentives to occupiers are reducing and rentals are hardening somewhat the market is good. The downside, which everyone talked about, was a lack of supply. Lack of supply and the challenges for 2015 was something that everyone had a view on too.
Whilst some developers who have funding, are looking to start or do more development – Stoford, IM Properties, Prologis etc the view was that there is scope for far more activity. The main thing I took from talking to people is that we need to showcase the development potential that exists in the B1, B2 and B8 markets strongly in 2015 – a New Year’s Resolution already!