Static rents

Surprisingly, perhaps, rents for logistic and warehouse space in the Midlands has remained static over the past year. That is the conclusion of Colliers for its Logistics and Industrial Big Sheds Rent Map for 12 locations. The survey reveals that prime rents are actually below levels of 5 years ago, which also applies to secondary space.

But the picture is changing. Simon Norton of Colliers said: “Take up of Grade A space in the past three years has started to eat into existing supply, resulting in signs of severe stock shortage. The lack of speculative development has exacerbated the situation. For the first time in years, landlords are beginning to feel they may just have the upper hand and are holding out for better terms.”

He makes the point that developers and investors realise that land prices, which have fallen in the past 5 years, will now rise.

Worcester based agent, Halls Commercial, makes that point in its marketing of the Corbett Business Park, Stoke Prior, near Bromsgrove. This has a total of 10,108 sq.metres (108,800 sq.ft.) in an office and two warehouses but also a six acre plot for further development. One attraction is being within two miles of the M5 motorway. Halls’ Richard Tomlinson said: “Corbett Business Park provides a good opportunity for manufacturing or distribution companies who are considering relocating.”

He adds that “the shed market has held up very well and we are getting to the stage, particularly around Worcestershire and south of Birmingham, where there is a distinct lack of supply of big sheds.” Also on the market, through Jones Lang LaSalle, is Canmoor’s 10 acre site on the M54 with its outline planning for a 17,187 sq.metres (185,000 sq.ft.) warehouse. “The plot is well placed for industrial/warehouse premises,” said Carl Durrant of Jones Lang LaSalle. “Few opportunities exist in the Black Country for prime land with planning and we are expecting the plot to generate a lot ofinterest from occupiers.”

Jones Lang LaSalle is also handling a 9,290 sq.metres (100,000 sq.ft.) manufacturing plant for the Bamford Trust close to Junction 2 of the M5 which was formerly occupied by Pilkington Glass.