After a near record year the shortage of industrial and commercial space in Worcestershire could “choke off” further recovery, an independent property consultancy is warning.
Primarily at risk are the strengthening warehouse and industrial markets where medium-sized units between 20,000 and 50,000 sq ft are in very short supply, says Bromsgrove-based GJS Dillon. “The sector has shown encouraging signs of growth, but now has a major stock shortage,” adds partner, John Dillon.
“We are certainly seeing an up-lift in the Worcestershire warehouse and industrial markets, but supply is extremely constrained,” he said. “As a result those properties that do become available are taken up very quickly.”
A similar situation is facing the commercial market where smaller offices are in short supply and the stock — particularly of those for sale — of larger, good quality office space is “all but exhausted”.
The supply of smaller Worcestershire offices in the 1,000 to 5,000 sq ft sector is also under pressure because there has been no speculative development for the last five years. “Those that do become available are snapped up,” said Dillon, whose company manages the Topaz Development in Bromsgrove and its sister site at Wildwood Triangle in Worcester — both of which are now full.
“The market for larger, good quality office space is sporadic at best. Anyone holding good Grade A or refurbished open plan Grade B office space is in a very strong position,” he added.
“Landlords with cellular office space will find less takers in the market, so they should consider either refurbishing, or taking advantage of relaxed rules which would allow them, if appropriate, to convert them for residential use.”
But perhaps the biggest trend of the coming year, the consultancy predicts, will be the resurgence of the commercial developer. “There is no doubt that the demand is there, and we are on the lookout for potential development sites for developers or existing commercial properties to fulfil demand when acquiring for local companies,” concluded Dillon.
GJS Dillon is a niche practice of chartered surveyors and commercial property consultants which not only handles assets in Worcestershire and along the M5 Corridor, but also manages properties across the UK for individuals, trusts and charities.
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