Take up of industrial and manufacturing space in Bromsgrove increased in 2017 for the first time in three years, as more industrial stock came to the market, although there is still a major shortage of accommodation, according to one of Bromsgrove’s leading commercial property agents.
John Dillon, managing director at commercial property consultancy and Chartered Surveyors GJS Dillon, which has offices in Bromsgrove’s New Road, says firms bought or leased 127,000 sq ft of industrial space in Bromsgrove in 2017, the best figure since 2014, beating the four year average of 115,500 sq ft.
Mr Dillon says: “The increased take up is good news, but the number of deals done actually dropped slightly which means that occupiers on average took larger units.
“Encouragingly there is now more available space on the market, at 100,000 sq ft, than there was at this time in 2017, but this is still the equivalent of only 10 months supply which means that firms will continue to struggle to find the right size and type of accommodation to meet their growth plans.”
GJS Dillon secured both the largest industrial sale of 2017 of 7,329 sq ft at 16A Buntsford Park Road, Bromsgrove and the largest industrial letting of 2017 of 27,949 sq ft at 11 Sherwood Road, Bromsgrove.
However, most deals done were in the 500 sq ft to 2,500 sq ft size range, where there is a current shortage, with only three leasehold units available in the town.
Mr Dillon says: “This shortage is really concerning as it continues to push up rental and freehold prices to record levels and will hamper the growth of start-ups and smaller companies which are the bedrock of the local economy.
“To address this situation, in Bromsgrove, as in the rest of Worcestershire, we need to see more sites allocated for small industrial and warehousing units, rather than for larger units or for housing.
“We are working with Bromsgrove District Council, Worcestershire LEP, landowners, developers, other commercial property agents, and business and property owners to try to address this, but if we fail we could see manufacturers leaving Bromsgrove for other locations in Worcestershire or the wider West Midlands.”
Each year GJS Dillon undertakes comprehensive research into the Bromsgrove commercial property market, and into the wider Worcestershire commercial property market, using its own knowledge and figures from Co-Star, presenting the findings to local councils, economic development forums, banks and clients.
