Increasing investment and interest within Worcestershire is creating a huge demand for Grade A stock within the county, and developers and land-owners are being urged to recognise the opportunity as rental levels and yields begin to surpass those prior to the recession.
Charles D’Auncey, Director at commercial property consultancy Harris Lamb, said that with plans for the much-anticipated £120 million Worcester Six Business and Commercial Park near junction six of the M5 having been given the green light, demand for stock within the county was likely to soar in the coming months.
The proposals for the 70-acre site, which are set to establish Worcester as a hub for high-tech industries, are expected to create around 5,000 new jobs in the county, representing a massive boost for its economy, and thereby attracting more businesses to the region.
Charles said that while there had been a great deal of excitement around the plans, investment into Worcestershire as a whole had surged in recent months, creating an increased demand for space within the region.
“In the past six months alone, Harris Lamb has been involved in a number of instructions within the county, largely related to the thriving automotive sector.
“These include the letting on a ten-year lease term of a 200,000 sq ft logistics building on the Big Berry development at Droitwich to Magna Automotive, a manufacturer forming part of the Jaguar Land Rover supply chain, as well as a five-year lease on a 40,000 sq ft warehouse to Lear Automotive on the Park Farm Industrial Estate at Howard Road, Redditch, also linked to a JLR contract,” he said.
Further instructions include the sale of a 40,000 sq ft site on Windsor Road at Redditch to manufacturers Peterson Spring and the acquisition of a 30,000 sq ft site at Cosgrove Close, two miles from junction six of the M5, on behalf of Evenacre.
Charles said that a combination of such high-level investment from the auto sector and the expected influx of tech businesses to the new technology park were forecast to lead to further interest from other improving sectors, highlighting a prime opportunity for developers.
“While the volume of interest and investment into Worcester is a positive thing, and certainly helps to cement the county’s position as an attractive site for large businesses, the downside is that there is now a real shortage of Grade A stock.
“In order to fill this shortfall, developers and land-owners need to recognise the opportunity and seize it, as rental levels are now beginning to surpass pre-recession levels and yields and such a move would prove a very fruitful one for those willing to build speculatively within Worcestershire in the near future,” he advised.