Industrial and Distribution Review

Good signs on horizon
As the summer holidays wind down to a close, the middle of 2009 has shown some promising signs for the industrial and distribution market in the Midlands.

SHROPSHIRE
Shrewsbury
Morris Property's Vanguard Park development has continued to go from strength to strength. Located at the gateway of Shrewsbury's principal commercial district, Battlefield Enterprise Park, Vanguard is home to a number of businesses looking for out to town showroom and trade counter units.

Anchored by the impressive Volkswagen Inchcape dealership (the largest VW dealership in Shropshire), Vanguard has just seen completion of phase three of its trade counter units, with five out of six now in solicitors' hands for sale or to let, despite the current market downturn.

Less than three miles away from Shrewsbury town centre, Vanguard offers main road frontage to 90% of plots within the development with Morris Property securing planning consent for a range of uses, including car showrooms, trade counters with 30% showroom consent, builders' merchants and 9m eaves warehousing. The result has been a diverse range of businesses choosing to relocate there.

"With its combination of good road links to the A5 and motorway network, great location and striking modern design, Vanguard Park has been a hugely popular development for Shrewsbury," said Liz Lowe, head of estates at Morris Property.

Shrewsbury Plumbing Supplies Ltd was one of the first businesses to move into the third phase of the Trade Counter developments within Vanguard Park. Specialising in high-end bathroom products displayed within their new showroom, the company has been at the development for just over six months and experienced brisk trade since arriving.

"We're delighted with the unit at Vanguard Park, the location in particular has been superb for passing trade. There's also a great mix of businesses which compliment each other," said Will Jones, director at Shrewsbury Plumbing Supplies Ltd.

Other tenants located at phase three of Vanguard Park include Salop Glass, ABS Pools, Cornerstone, Capital Appliances and MyBaby.
They join established Vanguard residents, Peter Posh, Paperway and Total Angling. Tesco's, Matalan, Brantano and the newly opened B&Q superstore are also within walking distance of the development.

Morris Property will soon be starting work on Vanguard Park phase four, interested parties for either trade counter units or design and build options should contact Towler Shaw Roberts or Morris Property.

BIRMINGHAM
Mark Fitzpatrick of GVA Grimley: "Well everyone is back from their holidays and for once there are good signs that the market is improving across the Midlands with a group of transactions taking place that in some cases have been in the pending tray for sometime and others that have been much quicker to reach fruition.

To name but a few of these deals is a useful starting point but activity in early September has been frantic with the following having already been concluded.

380,000 sq ft to Marks and Spencer at Prologis Park, Stoke, 212,165 sq ft to WH Smiths at Big Blue, Witton, 150,241 sq ft to CEVA Logistics at Barton 150, Barton Under Needwood, 217,000 sq ft to a pallet company at Prologis Park, 255,012 sq ft let to a food retailer at Mid Point Interlink, Bardon - a total of 1.2 million sq ft let this month.

The market has seen little activity in the 100,000 sq ft market over the last 12 months and it is good to see larger properties being taken up by occupiers.

Quite at what levels these deals were concluded is open to speculation as many are covered by confidentiality clauses to prevent the actual rents being disclosed but space is now actively being taken up by occupiers at a pace we have not seen for some time , we are far from being in a position where demand exceeds supply but the remaining new standing stock levels has taken a dramatic hit.

More deals look likely to conclude shortly across the region with transactions believed to be in solicitors hands across Birmingham , Stafford and along the A38 corridor which could see up to 1 million sq ft of additional space being taken up shortly which will really show a turn in the market .

At the smaller end of the market transactions continue with companies still looking hard at their options for acquiring space but frustratingly original set dates for achieving a re location are often not met as companies continue to be cautious and take time to reach decisions in these difficult times.

Hopefully this activity will continue and take up will continue to improve over the coming months and the market will see a good run into Christmas which would be encouraging for 2010 and companies will then be looking to the design and build markets to satisfy their property requirements as standing stock levels continue to fall and their ideal building will not be available off the shelf immediately for them."

Back to Midlands Features September 2009

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