Worcestershire commercial property market growth restricted2nd December 2014

A lack of available commercial property in Worcestershire could impede market growth in 2015.

According to forecasts by Midland property consultancy GJS Dillon, the burgeoning warehouse and industrial markets - particularly in the 20,000-50,000 sq ft sector - are at risk.

The office market is also suffering, with smaller offices in short supply and a scarcity of larger good quality office space for purchase. The shortage of smaller offices is due to no speculative development taking place for the past five years, which means that any that do come on to the market are snapped up very quickly.

John Dillon, partner at GJS Dillon, said: “We are certainly seeing an uplift in the warehouse and industrial markets, but supply is extremely constrained. As a result those properties that do become available are taken up very quickly. For example we agreed the sale of a 16,000 sq ft high-bay warehouse building in Sherwood Road, Bromsgrove in the first week of marketing. This was off the back of the letting a month before of a 28,000 sq ft warehouse in the same road to Siemens.” 

“On the acquisition side we did an active search for a local manufacturing company looking to take on around 20,000 to 25,000 sq ft in Worcester and ended up acquiring a 22,000 sq ft unit at Stonebridge Cross, Droitwich as there was nothing on the market of that size in the Worcester area.”

Mr Dillon said that the market for larger, good quality offices was sporadic and that anyone with Grade A or refurbished open plan Grade B office space was in a strong position. He recommended that landlords of cellular office space should consider refurbishing them or, if appropriate, convert them for residential use.

Written by Richenda Oldham