News

The cost of quality industrial and office space is set to grow in Worcestershire in 2013, according to one of the county’s commercial property agents.

John Dillon, partner at commercial property consultancy GJS Dillon LLP, which has offices in Worcester and Bromsgrove, said increasing demand from manufacturing and service companies is set to push up commercial property prices across the county.

“Demand for good quality industrial units of between 10,000 sq ft and 20,000 sq ft rose significantly across the county in the last quarter of 2012,” he said. “With no new development this has already created a shortage for potential new occupiers, with a resulting price
increase of around 10 per cent.

“At present we are working with manufacturing companies which are looking to expand into larger premises and distribution companies which want to centralise their operations into one location. “Demand for smaller industrial and business units is also higher, with more people looking to start up businesses or to grow one-man operations as business confidence continues to improve.”

The county’s office market also continues to strengthen with the full year figures showing that office take-up in 2012 for Worcestershire more than doubled to 232,388 sq ft from only 110,747 sq ft in 2011. “The 2012 figures show the office market has bounced back from its poor performance of 2011 to exceed the figures for 2010 (222,455 sq ft). “So, as the year proceeds, we expect the increasing demand for industrial space to be mirrored in the office market.

“As in the industrial market, quality accommodation will continue to attract occupiers, particularly at modern purpose built developments, such as Maximus’ modern Topaz office development in Bromsgrove, where two further lettings and a large freehold sale are in the pipeline.”

Businesses continue to be attracted to Worcestershire and especially to its key locations of Worcester, Bromsgrove and Redditch by excellent communications, through easy access to the M5, M42, and M40, to Birmingham, London and international airports, as well as by the flexible workforce and significant industry clusters in the county and by the key lifestyle factors which make the county one of the best residential locations in the county.

Mr Dillon added: “At present prices for both office and industrial premises are still a lot lower than in and around the Birmingham conurbation, but this gap will shrink in 2013, so this year represents a real window of opportunity for businesses to make the move to expand into new premises, especially with banks looking likely to lend more. “Deals will continue to be available,
but not necessarily on the quoting prices, so using a professional chartered surveyor to acquire the correct premises, should pay a financial dividend. Using an agent in conjunction with a specialist fit out company, can also save time and money and avoid any business interruption.”

GJS Dillon clients include Handelsbanken, Delta Cam International, Hayward Wright Chartered Accountants and Crowe Clark Whitehill.