DTZ flags up supply issues as big shed interest remains strong
A LACK of prime space is hampering the prospects of the West Midlands’ industrial property sector.
Research from DTZ showed take up in the region fell to 680,000 sq ft in the second quarter of this year as a lack of supply starts to bite.
The largest letting was NT International, taking 130,000 sq ft premises in West Bromwich for cash & carry use.
Grade A availability stands at 3.1m sq ft across 19 buildings. The outlook for take-up in Q3 is strong with a number of parties interested in the The Hub and other Birmingham buildings of 100,000 sq ft and above.
Simon Lloyd, head of industrial & loogistics at DTZ, said: “Although the take-up of good quality buildings in the West Midlands was relatively low in the last quarter, this is likely to be reversed in Q3 as a significant amount of Grade A floor space is currently under offer to a varying range of tenant sectors.
“The limited availability of top quality buildings across the region means that occupier choice is now very restricted.”
The report also revealed that – on a nationwide basis – the profile of occupiers has changed in the last 12 months, with take-up by logistics companies increasing to 16%, largely due to space being taken by Royal Mail and Parcelforce.
