SECTOR FOCUS: PROPERTY
A record year for M42 real estate is on its way
company Cushman & Wakefield has helped boost the third quarter office take up figures in the M42 corridor. Approximately 368,000 sq ft of
A
space has been snapped up in the corridor in the first three quarters – and Cushman & Wakefield believes that 2015 could turn out to be a record year. Cameron Thomson, senior
surveyor at Cushman & Wakefield in Birmingham, said it was entirely possible that the locality could see around 500,000 sq ft of lettings during the year, as the company has just announced further deals in the wake of the 20,000 sq ft letting to BT. BT has sub-let the space at
Aquarius House from another telecoms giant, EE. EE has a lease on the grade A building until 2022, and the sub-letting will see BT take over the second floor. The deal was the biggest letting in the M42 corridor during the third quarter, but Mr Thomson said that two major lettings had also been secured at nearby One Trinity Park, which would fall into the final quarter of the year. These deals have seen Alpro, the Belgian-based organic and non- organic food and drink products
20,000 sq ft letting at Birmingham Business Park by leading real estate
Cameron Thomson: M42 heading for a record year?
Prime office space is low in supply
Businesses throughout Birmingham have been urged to ‘work smarter’ at using their existing property space to help tackle a potential Grade A office accommodation crisis. The warning follows revelations
that rising demand for commercial property in Birmingham will see the city run out of grade A office space in less than two years. But as demand continues to
increase, the supply of prime commercial property is still lagging some way behind, presenting businesses in the area with a challenging landscape to navigate. Paul Statham,
‘There is now an opportunity for developers to seriously consider commencing speculative office builds’
maker, take a new lease of one of the 13,000 sq ft floors at One Trinity Park, and engineering firm RLC UK snap up another of similar size. The 52,000 sq ft building is now fully let. That will take Cushman &
Wakefield’s deals at One Trinity Park and Birmingham Business Park to more than 70,000 sq ft this year, one of the reasons that Mr Thomson is confident that the out- of-town market is heading for a record year. “There was a resurgence in
demand in the primary out-of-town market in the West Midlands in 2015," he said. “Recognising the dwindling
supply of high quality office space, tenants have been busy securing the best space that has been available during the year and taken advantage of being able to improve their working environments as well as still achieve competitive deals in a market where there is upward pressure on rents and reducing incentive packages are very tangible.”
Growth drives expansion forward
A Birmingham-based logistics company is on the road to expansion after acquiring a 70,000 sq ft warehouse at Fortnum Close in east Birmingham. PGS Global Logistics was established by managing
director Paul Eyles 25 years ago. Since taking on the new warehouse, PGS has added
24 new staff to its workforce, bringing the current head count to 168. The firm now operates two large scale warehouses in east Birmingham, which are located almost side-by-side. PGS also has depots in Droitwich and Dudley. David Bayliss, the firm’s commercial director, said:
“Having experienced considerable growth in recent years, we decided to invest heavily in our workforce, equipment and facilities to ensure that we continue to provide the best service for our diverse client base. “Our new warehouse at Fortnum Close has enabled
us to expand very quickly and more importantly from our customer’s point of view, seamlessly. The investment will ensure that our target to become a £20m turnover company will now be achieved within three years.” Chris Keye, of Darby Keye Property, who acted for
the warehouse vendor, said: “PGS Global Logistics are a great success story. They are extremely well established in Birmingham and were well aware that large scale warehouses are scarce in the current market.”
Road to expansion: Chris Keye (left) and David Bayliss
founder and CEO of workspace experts Condeco (pictured), said: “Businesses must look to smarter ways of using their existing property. “Our research has found that
companies can be using as little as 38 per cent of their office space, meaning that there is tremendous potential for efficiency savings in workplaces across the region. Technological advances enable teams based in different locations to work collaboratively, and can reduce the need for offices in city centres.”
Retail therapy for leading investor
London & Cambridge Properties (LCP) has strengthened its hold in the UK local convenience retail sector by acquiring a £36.65 million nationwide portfolio of neighbourhood shopping parade. The addition of the Navigation
portfolio to the Local Convenience Parades division of LCP – one of the UK’s leading property investment and management companies – brings its investment in small, neighbourhood centres to more than £110 million. The new portfolio, acquired by
Allsop LLP from commercial property consultants Mason and Partners, comprises 19 sites that stretch from as far north as Kilsyth, North Lanarkshire, down to Worthing, West Sussex. James Buchanan, investment
director of LCP, said: “The local and convenience shopping sector has become an increasing focus for us. This portfolio offers LCP numerous asset management opportunities, including redevelopment. We are actively seeking more sites and welcome all introductions.”
FEBRUARY 2016 CHAMBERLINK 61
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