Expansion puts further squeeze on Solihull business park
DEMAND for commercial space at a Solihull business park has resulted in just one unit available for lease.
The situation at Monkspath Business Park reiterates the findings of a recent study which has identified a serious shortage of industrial and commercial space in the borough, partially driven by the ongoing expansion of Jaguar Land Rover.
The latest scenario has arisen because of the expansion of two existing tenants.
Acting on behalf of clients Cornerstone, joint letting agents Bilfinger GVA and GBR Phoenix Beard have secured lettings on two units of 10,627 sq ft and 7,851 sq ft to UniElectronics and Packshot, respectively. Both lettings have been completed on five year terms.
Both companies are existing occupiers at Monkspath, with electrical products supplier, UniElectronics now operating from several buildings on the park, representing a four-fold increase in their occupancy in just 18 months.
Commercial photography company Packshot, which provides product images to retailers including John Lewis, has doubled in size.
These lettings leave just one unit of 5,392 sq ft available, on which Cornerstone is now undertaking a full refurbishment.
Tesni Thacker, Associate in Bilfinger GVA’s Industrial and Distribution team, said: “These lettings represents a fantastic success story, both in terms of the occupiers’ growth and for Cornerstone, with significant commitment from existing tenants keen to secure additional space on the site.
“This is a strong reflection of the positive sentiment throughout the industrial sector in the West Midlands, with falling availability driving demand for well located, accessible destinations such as Monkspath Business Park.”
Since acquiring the popular multi-let industrial estate in December 2012, Cornerstone has undertaken a significant programme of investment which has included the refurbishment of the units and delivery of superfast broadband to all tenants.
This programme has been a major contributing factor in the fall of vacancy rates from approximately 50% at the time of its purchase and a rise in rental values, with the last deal completed at a rent in excess of £6.50 per sq ft.
Graham Barker, Managing Director – UK Asset Manager at Cornerstone, said: “We are exceedingly pleased to see Monkspath Business Park continuing to attract such a high level of commitment from existing tenants. This is a strong indication of the benefits of a wide-reaching investment of the type that we’re undertaking, both improving the physical assets themselves and providing additional services to tenants.”
Christian Smith, GBR Phoenix Beard, said: “The regional industrial market is at a significant point, with requirements from large-scale manufacturers like JLR driving demand through a scarcity of stock. The area around Solihull and the M42 corridor has fared particularly well, with little available stock remaining in the area, particularly at sites such as this which are well connected, in close proximity to the Airport and near to high quality residential sites.”
Tenants at Monkspath Business Park include Floor Restorations, Electric Centre, Shred-it, and PTS Plumbing Trade Supplies.
