The level of commercial property activity in the West Midlands almost doubled in the second quarter of the year, according to new figures from national commercial property firm Lambert Smith Hampton (LSH).
The increase was driven by significant rises in activity in the retail and industrial sector, but transactions in the office sector fell significantly, reflecting the general sentiment in this sector in the regions.
Overall activity across all sectors in the West Midlands peaked at £317 million in the second quarter, compared to £167 million in the first three months of the year. Retail transactions accounted for £209 million of the increased figure, largely due to the sale of the Kingfisher Shopping Centre in Redditch for around £130 million.
In the industrial sector £82 million was transacted compared to £62 million the first quarter, with deals at G Park, Rugeley and Birch Coppice, Tamworth accounting for around £72 million. In contrast, investment activity in the office sector fell back to £26 million from £59 million.
LSH’s quarterly analysis of the market showed that the West Midlands was one the few regions in the country to see an increase in activity, joined by the East Midlands, the south west and north east.
Adam Ramshaw, Associate Director in the Birmingham office of LSH said, “Some economic indicators are improving in the region, and this is creating increased take-up, particularly in the industrial sector. However, as far as the wider investment market is concerned, Q2 sentiment was largely unchanged from Q1. There remains relatively little demand for secondary property and a lack of debt and aggressive pricing is holding back UK buyers from acquiring the most sought-after prime assets.”
He added, “The West Midlands has performed well relative to many other areas of the country where activity is muted at best. However, the region has relied on a small number of larger deals as ransactional volumes remain relatively subdued.”
Across the UK, £7.8 billion of transactions were recorded in the second quarter of the year, a slight increase on the first quarter of last year.