Bromsgrove business growth stagnating as town gripped by commercial property supply crisis
Bromsgrove is facing a record shortage of business premises, according to commercial property agents in the town.
Stocks are so low that agents fear there might only be three months’ supply of manufacturing, warehousing and distribution space available.
Such poor resources could put off many firms from investing in the area or encouraging existing occupiers to expand, John Dillon, managing director of GJS Dillon has said.
Mr Dillion, whose firm has offices in the town, said there was now just 25,000 sq ft of industrial business space currently on the market to rent in Bromsgrove, with less than 5,000 sq ft for sale.
“Bromsgrove is a victim of its own success. It is such a sought-after business location that it cannot keep up with the very high demand for industrial property, but the town badly needs more space bringing to the market, either new build or second hand,” he said.
“With the average take up of industrial space over the past three years of 112,000 sq ft per annum, there is only around 13-weeks supply remaining in Bromsgrove, leaving many businesses facing disappointment and being forced to look elsewhere in the county, or beyond, for industrial premises. However, the shortage of industrial property, although not as acute, is being experienced across the whole of Worcestershire.”
According to Mr Dillon, freehold units are in particular demand, with company directors seeking to purchase buildings for their businesses through a Self-Administered Pension Scheme SIPP.
“Business owners are taking advantage of the continuing record low interest rates and the increasing willingness of the banks to lend, to acquire property. This has also led to a shortage of freehold office space in the town, but it is not quite as bad as in the industrial market,” he added.
Figures also suggest that the supply of office space in the area may only be sufficient to meet needs for the next 15 months.
“The average annual Bromsgrove area office take up over the last three years has been some 46,000 sq ft. This month (January 2017) total availability stands at 57,000 sq ft, of which just under 22,000 sq ft is freehold,” said Mr Dillon.
“We are working with Bromsgrove District Council, landowners, developers and business and property owners to try to address the shortage of available commercial property, as it could otherwise start to damage the future economic growth prospects of the town. Already it has pushed up prices to record levels.”
Earlier this month (January 2017), GJS Dillon sold the freehold of an 8,800 sq ft industrial unit in Bromsgrove to the current tenant, a German-owned precision engineering company, while it has a further five industrial units under offer.
“There has never been a better time to market an industrial property in Bromsgrove,” said Mr Dillon, whose firm has disposed of more than 80,000 sq ft of industrial property across the region in the last three months.
