There has been upsurge in letting activity in the West Midlands industrial market and there is real rental growth for the first time since the early 1990s, reports Phoenix Beard in its latest regional report.
The firm believes that the increased number of lettings is down to sustained economic growth both at a regional and national level.
“This has led to enhanced occupier confidence, particularly within the manufacturing sector, which is undergoing significant expansion,” said Eugene O’Brien, director of business space at Phoenix Beard.
He added: “Increased levels of demand are now resulting in real rental growth, hardening lease terms and dwindling incentives for the first time since the early 90s.”
There is a gradually declining level of supply, according to the report, but thanks to projects undertaken by the Birmingham Heartlands and Black Country Development Corporations “the supply of speculative schemes has gradually increased”.
“Both are due to be wound down but have successfully facilitated the development of over 81,752 sq m (880,000 sq ft) in the region,” added O’Brien.
The report also notes continuing office occupier demand and a strong level of demand for out-of-town retail units despite a lack of new development.
EGi News 13/11/97
