The Bromsgrove office market slowed to its lowest take up rate for the past four years in 2017, as economic and political uncertainty prevented occupiers from committing to new premises, 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 only 23,000 sq ft of office space was leased or bought in 2017 in Bromsgrove, the lowest figure since 2013 and well below the market’s four year average of 40,000 sq ft.
Mr Dillon says: “Despite enquiry rates that were higher than in 2016, fewer deals were concluded for less space in Bromsgrove for 2017. The on-going uncertainty over Brexit has undoubtedly led to many office occupiers putting decisions to move on hold, despite making enquiries about the availability of premises. This is in contrast to the industrial property market which experienced a three year high take up, with manufacturers seemingly much more willing to commit to new property.”
The largest office sale of 2017 was of 6,547 sq ft at Saxon View, Saxon Business Park, secured by GJS Dillon, while the largest office lease deal of the year, and that which generated a record office rent for the town of £18psf, was of 3,124 sq ft at Topaz Business Park. However, most deals were done in the smaller 500 sq ft to 1,500 sq ft size range.
Mr Dillon says: “Once again start ups and smaller growing businesses were most active in the office market, and it is important there continues to be a wide range and choice of starter units and serviced offices available in Bromsgrove to maintain the town’s economic base.
“Larger occupiers will continue to seek high quality business park accommodation with their own front door, as they did in the two largest office deals of 2017, and business owners will still be keen to acquire office freeholds.
“However, continuing economic and political uncertainty around the final outcome of the Brexit negotiations is likely to continue to make office take up sporadic in 2018.”