Redditch is in danger of being left behind unless more industrial land is brought forward.
That was the warning from Ian Parker, a director of John Truslove, the town’s leading property agent.
On the plus side, he noted, the UK’s industrial and logistics sector was enjoying unprecedented levels of demand. In 2014, take-up surged, investment activity saw an all time high and speculative development returned in a meaningful way.
Indeed a recent report revealed that take-up across the country rose eight per cent to a record 103.3 million sq ft in 2014, of which 19 million sq ft was in the West Midlands. However, on a cautionary note, total availability reduced by 38 per cent from its 2011 peak to stand at 31.8 million sq ft.
The position in Redditch is even more stretched, according to John Truslove’s own deals performance. In 2014 the industrial market saw an increase in the total number of deals – up nine per cent – but the take-up in terms of square feet was similar to the previous year, due to the continued lack of speculative development in the area.
Mr Parker said: “Redditch is out-performing many neighbouring towns. Industrial rents are now rising significantly and freehold values are exceeding those reached at the peak of the market in 2007. This is due to a lack of supply.
“Availability has, we estimate, reduced by at least 50 per cent since 2011, much more than the region as a whole.
“Apart from Hepworth Park on Brook Street in Redditch’s popular Lakeside business district, a scheme where John Truslove are the sole agents, which offers brand new industrial units from 1,678 sq ft to 11,746 sq ft, and is likely to be snapped up fast, there are no new ones coming to market.
“And, with a severe shortage of larger stock, this situation looks likely to intensify through the rest of this year. This is evidenced by the fact that we are now quite frequently letting units prior to them becoming vacant.”
He went on: “At the heart of the country and the motorway network, Redditch remains a magnet for industrial and logistics companies.
“However much of what stock is currently available was built some while back and, despite refurbishment and up-grading, there are always those looking for new build. Indeed new build is the lifeblood of the commercial property sector. You need a constant supply coming through.
“Investors and employers will go elsewhere if that demand is not met. To keep going forward Redditch planning authorities must address the problem. The town has always had a ‘can-do’ reputation and it is vital we maintain and enhance that image.”