West Midlands property investment market outperforms everywhere but the South East

INVESTMENT in commercial property in the UK’s regions is at its highest level since Q1 2011, according to property consultancy Lambert Smith Hampton’s (LSH) latest research.

And the West Midlands is second only to the South East in regional performance terms.

LSH’s UK Investment Transactions Q3 2013 reveals that at £3.71bn, regional investment in commercial property is at a two and a half year high and 14% up on Q2 2013, when investment was at £3.24bn.

Perhaps unsurprisingly the South East saw the highest level of investment outside of London in Q3 2013 at £1.6bn, followed by the West Midlands at £799m and the North West at £545m.

Significant deals in the West Midlands included Gracechurch Shopping Centre in Sutton Coldfield, Mell Square in Solihull and 1 Brindleyplace in Birmingham.

Reports suggest that total regional investment so far in 2013 is already higher than the whole of 2012.

UK investors are still the biggest investors in the regions ahead of overseas investors at a 65:35 split. Overseas investors continue to concentrate their attention on Central London, accounting for 75% of the market in Q3.

However, LSH predicts that UK buyers will make up a greater portion of the total market activity as conditions in the regions continue to improve.

Adam Ramshaw, director in capital markets and head of LSH’s Birmingham office, said: “As we forecast at the beginning of the year, there has been a change in investor attitude towards the regional markets. Over the last two quarters there has been an increase in regional investment and investment has already outstripped the 2012 total.

“Increasing confidence should feed through to the markets as companies look to move or upgrade premises and consumers have more disposable income to spend at high streets, retail parks and shopping centres.”