Many Areas of the Country See Increased Demand for Industrial Units to Let
In many areas of the country, there’s a growing demand for industrial space and warehousing, with online retailers, manufacturers and even small businesses snapping up these properties as soon as they become available. This is making industrial units an incredibly attractive prospect for commercial investors.
Strong Demand for Commercial Property in the West Midlands
According to a study conducted by Savills, the first half of 2017 saw four million sq. ft. of industrial space being taken up in the West Midlands. This breaks all previous records for the first half of the year.
The Big Shed Briefing report produced by Savills demonstrated that the take up of industrial properties was 58 per cent higher than the first half of last year, while also being higher than the long-term average by 95 per cent.
Savills also said that developers are responding to the previous shortage of industrial units in the West Midlands. By the end of 2016, there had been a 16 per cent increase in the amount of industrial space available, with companies like L.C.P. Management Ltd having a number of industrial units to let in the area.
In the West Midlands, the automotive sector was the most dominant in the H1 take up, accounting for 46 per cent of the total units.
Industrial director at Savills Birmingham, Ranjit Gill, spoke about the report suggesting that the annual long-term average has already been eclipsed by industrial take up in the area, demonstrating that there is a strong demand from occupiers for having the right premises in the right area.
Growing Need for Industrial and Warehousing Space on the South Coast
Lambert Smith Hampton, a commercial property specialist has also reported growing demand on the south coast for industrial and warehousing space.
With continued reports about the increasing need for sites for online retailers, the Industrial and Logistics Director for LSH’s South Coast team, Adrian Whitfield said they were witnessing a “robust demand” for industrial and warehousing space in the south, with the boom in online retailing being partly responsible.
He suggested that online retailers are looking for distribution and warehouse space near cities like Southampton and Portsmouth in order to provide faster delivery times by being closer to their market.
Whitfield did warn that even though the logistics market is enjoying newfound confidence, this may be short lived due to the shortage of good industrial units. However, with such great demand in place, many investors are already working on developments that will cater for these requirements.