‘Record’ rent in Network Rail industrial deal
The UK’s railway infrastructure manager Network Rail has signed a 10-year lease on a Birmingham industrial unit.
This is understood to be a record in terms of rent for a secondary unit of its size in the region.
Harris Lamb on behalf of Lothbury Investment Management oversaw the letting of the 35,777 sq ft site at Meteor Park in Aston.
Network Rail completed the new lease within weeks of the former lease’s expiration.
Neil Slade, director in the Agency Department at Harris Lamb, said: “Meteor Park is one of the last speculatively built Estates prior to the recession and with little development of similar units since, rents and demand for high quality modern units has grown exponentially over recent years.
“The subject property falls into the prime mid-box market where supply in the region is so weak, especially the better specified units. This particular unit had only one previous tenant, was refurbished to an effective ‘as new’ condition and provides the standards and specifications demanded many modern businesses, such as good eaves height, energy performance, good yard and parking and excellent road links,” he added.
“The property was let within weeks of the former tenant’s lease expiring off a headline rent of £7.25 per sq ft, that is believed to be a record level for Birmingham on secondary mid-box premises of its size.
“Furthermore, there were several parties who viewed the building whose requirements remain live, reflecting the continuing demand for comparable units within the region and where we advocate the build of similar properties in the general Midlands conurbation, such is the discord between supply and demand at the current time,” he said.