West Midlands Andrew Dixon Alex Smith
Andrew Dixon & Company is a Telford based commercial property agency with a strong focus on both industrial and office markets. We spoke to Alex Smith, Director, to provide his view on the on the commercial property mar- ket. ‘It has been a turbulent 12 months with many businesses and commercial occupiers having to adjust to external forces following the announcement made in last year’s budget along with the Trump Tariffs earlier this year.
In spite of this uncertainty and generally subdued sentiment, the industrial and logistics markets have remained relatively resilient within the Telford and wider West Midlands area. In the first half of 2025, there has been a notable increase in vacancy rates that has given occupiers more choice than they have been used to in the last few years. However, rents have held up well although they appear to have cooled off following several years of strong growth.
In Telford we have been involved with some sizeable large-scale speculative schemes including TBP120 and Hortonwood 45, both providing warehouse space over 100,000 square feet with the lat- ter being let earlier this year to Hager UK Limited. We are involved in the development of 45,000 square feet at Ketley Point, the site of the former Shropshire Star headquarters. In addition, planning consent has been secured for the redevelopment of the former GKN premises known as Telford Logistics & Technology Park to provide five warehouse units ranging from 65,000 – 300,000 square feet.
Deals have often become protracted, but occupier interest has been relatively robust despite the extended decision-making cycles we
G Herbert Banks LLP
Nick Jethwa is Commercial Partner at G Herbert Banks LLP, based in Worcestershire. The firm, established in 1898 are general practice, with departments including : Land and Development, Commercial agency and asset management, agricultural, professional ser- vices and house sales. Acting mainly within the Midlands, the firm also acts in respect of few properties in Yorkshire.
Nick Jethwa
When asked about the cur- rent market conditions, Nick’s thoughts were “it has been
noticeably more challenging in Worcestershire since the Autumn 2024 Budget, with less and more fickle interest across all sectors. Speaking to many other commercial surveyors within the area, we are all still getting deals done, but the pattern has gone out of the market.
Each deal is taking longer to progress through legals, due to a more cautious approach being taken. Going into the summer holiday sea- son, this has traditionally been a quieter period, but thankfully there has been an upturn in interest and deals being instructed since the beginning of August. Also we are seeing signs of increased interest in the office rental market, which is a pleasing upturn for this sector. It is essential to set asking prices correctly and encourage clients to ensure premises are well presented.
COMMERCIAL PROPERTY MONTHLY 2025
Contrary to the fluctuations in the agency market, we have experi- enced a 4 fold growth in our commercial management instructions this year. Its not a department prone to rapid growth and we feel this is due to changes within other local management businesses, coupled with our reputation in Worcestershire of getting the job done. We act on behalf of various well known estates and private Landlords and pension companies. This includes industrial, office, retail and leisure sectors.
We also enquired how Worcestershire is performing in the uncertain climate. Nick comments “Worcestershire is well position for growth in terms of its central location and access to the National Motorway system, together with its relatively new 3rd mainline train station at Worcester Parkway, just off junction 7 of the M5.
Industrial developments off both Junctions 6 & 7 have encouraged new inward investment and employment opportunities. This is abso- lutely essential given the extent of housing development across the County, and particularly south Worcester. There is an extensive and increasingly skilled labour pool, with Worcestershire being highly ranked as a place to live/work.
For more information visit:
www.gherbertbanks.co.uk
have seen. I think we are seeing some of those decisions beginning to be made as companies adapt. However, we are perhaps seeing occupiers looking to grow by becoming more efficient in the way they operate rather than the traditional increase in space, which in turn is changing their property requirements. There is a little more optimism than at the start of the year as we see improved enquiry levels. There has been a limited supply, particularly of freehold property with vacant possession but now we are seeing a few more opportunities coming to the market.
The office market has probably faced the most change post Covid. We have seen a return to the office, but space has often been adjusted to provide more adaptable/ hybrid working space. Occupiers are seeking better quality space that is more energy efficient and sup- ports modern working strategies and this is likely to provide a clear split between prime and lower quality office. The latter may struggle to compete over time without the required investment or may be repurposed for other uses.
In summary, the last twelve months have posed challenges for com- mercial property occupiers across all areas. The industrial sector has outperformed both retail and office markets and is currently well positioned, despite the increasing vacancy rates. We anticipate that occupiers will continue to adapt on how they use commercial space, reacting to the ever changing, geo political and economic backdrop.
For more details please visit
www.andrew-dixon.com or call 01925 521007
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