Prices for new industrial properties across Worcestershire will set new records in 2017, as the shortage of industrial space on the market continues to worsen, according to one of the county’s leading commercial property agents.
John Dillon, Managing Director at commercial property consultancy GJS Dillon Limited, which has offices in Droitwich, Worcester and Bromsgrove, says that prices for both new and quality second hand industrial units will hit new highs in 2017.
“Demand is far outstripping supply for industrial units between 3,000 sq ft and 40,000 sq ft, as manufacturing and distribution businesses in the county continue to invest in new premises and show increasing confidence in the post-Brexit economy,” says Mr Dillon, whose firm has disposed of more than 80,000 sq ft of industrial property in the last three months.
“There is very little space coming onto the market at present, and this is unlikely to change in 2017, as few speculative developments are planned. Even at Worcester 6 only one speculative unit of 45,000 sq ft has been announced.
Mr Dillon continues: “This on-going shortage is placing upwards pressure on prices. Next year (2017) new build industrial units up to 5,000 sq ft in the right location in the county will reach £120psf, while similar units to rent will break the £7psf barrier.
“Although they are not going to achieve the same levels as for new builds, prices of good quality second hand units in established business park locations are increasing quarter on quarter, and when they do become available are highly sought after, frequently going to best and final bids,” says Mr Dillon.
“However, we do not know for how long this post-Brexit vote economic bounce will continue, so there is a real window of opportunity for freeholders to bring their industrial property to the market.”
According to Mr Dillon, the on-going shortage of industrial property means than businesses looking for new premises are having to spend more time and money searching, and if they do identify a suitable building they often miss out.
Mr Dillon says: “Businesses cannot just look on-line, as by the time a property appears, it could already be too late. We encourage anybody looking for industrial or office premises in Worcestershire to register their needs with us, then they will be at the front of the queue when we put a new building on the market.
“Businesses looking for industrial units of 10,000 sq ft or more can also use our specialist Business Relocation Service which will identify a business’s needs, space requirements and budgetary constraints and then search on and off the market for a property, as well as, if required, disposing of the old premises.”