Industrial take-up down by a third across the region

TAKE-UP of industrial space in the West Midlands fell dramatically in the third quarter of 2010, new research suggests.

The fall of 36% in the region was worse than the wider national picture with a 10% drop in industrial take-up from Q2 to Q3.

And like nationally, this fall in the West Midlands was the third consecutive quarter in which new occupancies dropped, says the ‘Property Times’ report published by real estate advisors DTZ.

The number also represented a drop year-on-year in the West Midlands but the fall is much less significant at just under 2%.

The report says that occupiers in the West Midlands proved wary of committing to space and there was no pattern of demand with non-food retail, parcel operators and third-party logistics all taking on new space.

It added: “In general, take-up was driven by local companies taking secondary buildings.

“Looking forward, enquiry levels picked up both in number and credibility over the summer, with an increased number of viewings, particularly for smaller secondary space, expected to elevate take-up levels.

• Latest DTZ share price and historic data – click here

“More than in other regions, current availability is concentrated in smaller stock, with around 14m sq ft of available stock in buildings between 50 – 150,000 sq ft in size.”

One of the biggest transactions in the West Midlands during Q3 was online grocer Ocado purchasing 35 acres of land at Birch Coppice Business Park, in Tamworth, on which to build a 350,000 sq ft distribution centre.

Simon Lloyd, head of industrial and logistics at DTZ, said: “Whilst the reduction in take-up in the last quarter may be seen as disappointing, in reality, it is a reflection of the limited amount of available built stock available to tenants.”