Bull run continues as investment booms in West Midlands

INVESTMENT in commercial property across the West Midlands region has surged by 32% in the second quarter compared to last year, according to research by Lambert Smith Hampton (LSH).

The latest edition of the property consultancy’s UK Investment Transactions report found that the region was the second strongest performing region in the UK behind the South East with total transactions of £603m – 40% ahead of the five-year average.

The figures came against a national backdrop of £36bn invested in the first half of 2015 – the second highest figure on record with investment in the second quarter up by a third on the same period last year, although the number of deals fell.

Overseas investors continued to be the largest net buyers of UK commercial property between April and June, accounting for more than 50% of purchases.
North America was the main driver of this, underpinned by a handful of major portfolio deals.

Adam Ramshaw, head of office at LSH in Birmingham, said: “The report shows that investors are increasingly looking to the regions for opportunities and reflects the significant optimism in their future potential.

“While the Industrial and Logistics sector remain the dominant asset class in our region, the shortage of stock means that investors are now increasingly looking at other sectors for greater return.

“Whilst this has led to yield compression across the board, the Midlands still represents better value when compared to areas like the South East.”