Investment in commercial property across the West Midlands got off to a promising start during the first quarter of 2016, according to new research published by national commercial property consultancy Lambert Smith Hampton (LSH).
The latest edition of the company’s quarterly UK Investment Trends (UKIT) report reveals that investment totalled £0.96 billion during the first quarter of the year, almost double the five-year average.
Total activity across the UK during Q1 2016 totalled £11.7bn.
Across the West Midlands, the office sector accounted for 17% of the total volume invested at £159 million, while retail account for 54% of transactions with £521.95 million of acquisitions – much of which can be attributed to the purchase of the recently launched Grand Central shopping centre by retail developer Hammerson in January.
Industrial transactions stood at £185.75 million (19%), while £88.52 million worth of transactions were recorded in other sectors.
Adam Ramshaw, Head of Birmingham and East Midlands at LSH said: “Q1 has been a hugely positive one for investment in the West Midlands.”
The research also found that appetite remains strong for regional property assets across the rest of the UK, with £4.5 billion invested outside of London during the quarter – 6% above the five-year average. Conversely, investment in the capital was significantly down on the five-year average, meaning that figures for the UK as a whole are at the lowest quarterly total for almost three years.
Ezra Nahome, CEO of Lambert Smith Hampton, believes the national figures, driven by a reduction in purchases by overseas buyers, are a result of uncertainty around Britain’s membership of the EU.