News

The industrial manufacturing and warehousing sector is very active, while the office sector continues to recover, writes John Dillon, managing director of Bromsgrove-based JP Dillon Commercial Property Consultants, about the Worcestershire commercial property market.

There is a significant demand for good quality industrial units of between 10,000 sq ft and 20,000 sq ft across the county, as manufacturers look to either expand or relocate to Worcestershire. This demand is driven by the excellent communications provided by the M5, M42 and A38, the flexible workforce, the positive attitude of the county and district councils, and the fact that the county is a very pleasant place to live and work.

Typical is start up manufacturing company Delta Cam International, which my agency advised on its property needs, delivering it significant savings on a 10-year lease on a 9,124 sq ft unit at Great Western Business Park, Worcester, where it expects to create 25 jobs in the next year.

Other significant deals have seen German-owned precision engineering company 2KM (UK) Limited expand into a 8,832 sq ft industrial unit in Bromsgrove and a 2.6 acre Redditch industrial estate with development opportunities go under offer.

The county’s office market continues to recover from its low point in Q3 of 2011, when deals for only 16,412 sq ft were completed.

A continuing oversupply of office accommodation means that rents and freehold prices remain competitive, offering good opportunities for new occupiers. However, demand remains significant and deals are continuing for high quality space at key locations in the county, especially at premium office parks in Bromsgrove and Worcester.

Take-up for 2012 was boosted significantly by our letting to AFH Financial Group of more than 14,000 sq ft on a new 11 year lease at Avon House, Buntsford Gate Business Park, Bromsgrove, the biggest in the county for five years. Other deals completed and in the pipeline underscore the continuing recovery in the office market.

Town centre regeneration is providing an opportunity for a new retail led mixed use development on the Historic Market Hall site, on St John’s Street, at the southern end of Bromsgrove High Street. With the closing date for expressions of interest in this 1.78 acre town centre gateway site set for 12 July, there has already been an encouraging level of interest. In addition to retail, other supported leisure uses, such as cafes, restaurants and a cinema would also be considered.