Tight Supply for Industrial Property

In a similar vein to offices, industrial and distribution stock is also drying up due to a high level of take up in the period September 2009 to March 2010. On the other hand, said CBRE, enquiries are declining so that rents are unlikely to increase until 2012. CBRE’s Mike Stephens commented: “There are active enquiries from retail/logistic operators, including Marks and Spencer, Tesco and Ocado. They are looking for design and build solutions, which frankly is the way the market is going. There are no signs of speculative development on the horizon.” Stephens suggests that investment activity will increase later this year. One change which will underline the office market in Birmingham, and indeed throughout the UK, is that the cuts in government spending will stop the mass relocation of government workers from London.

Looking ahead, CBRE believes that value rebounds are fading and debt unwinding will take some time; there will be greater differentiation between local markets and property assets; development opportunities will start to emerge as supply shortages increase; rental growth prospects are variable. This all adds up to a positive medium term outlook in property so welcome to the “new normal.”

The Midlands Commercial Property Register

The Midlands Commercial Property Register is a leading UK business property publication from Martin Austen Publishing. The aim of the publication is to offer a simple and effective means of finding Offices Space, Serviced Offices and Commercial Property in the Midlands . You can also find the latest commercial property news for the Midlands.