West Midlands Strong Demand Throughout Herefordshire!


The last year or so has been interesting, although challenging at times. There remains strong demand for good quality prop- erty and more unusual opportu- nities however, locations such as Herefordshire have quite a lot of basic property which presents more of a challenge in terms of disposal.


Tim Reed, Sunderlands Hereford


It is clear that the industrial mar- ket remains the best at the current time, albeit not as strong as in the previous couple of years. Across


the board from starter units to more substantial buildings good levels of demand continue. Rents of up to £9 per sqft for new units at Centenary Park in Rotherwas have been achieved, and a very modern, highly specified facility previously owned by BP Pulse of around 16,200 sqft on 1. 05 acres was sold on this Estate for a fig- ure approaching £2m. At the other end of the spectrum we sold a redevelopment opportunity that comprised a number of dilapidated plots and rough land of about 2. 3 acres at Chapel Road, and multiple bids were received for this unusual opportunity with quite a bit of asset management required. Burcott Business Park has also been sold as an investment in the past year and we are in the process of selling another Industrial Estate locally.


The office market has been difficult. Locations such as Herefordshire have a higher proportion of ordinary office stock which can be diffi- cult to let on the open market given the challenges of modernisation, Energy Performance requirements and the provision of parking. It


Robust Performance Right Through Worcestershire


Worcestershire’s commercial property market continues to perform strongly, with demand remaining particularly robust in the industrial and logistics sectors reports Ben Maiden, Sheldon Bosley Knight.


Ben Maiden


The county’s enviable location along the M5 and M42 corridors, combined with its long established strengths in engineering, advanced manufacturing and supply chain


activity, continues to attract a wide range of occupiers. Vacancy levels remain low across the region – notably in Redditch, where availability stands at just 4. 3%. Far from signalling a lack of business activity, this reflects the scarcity of high quality space, underlining the appe- tite from companies eager to secure accommodation in the county.


Development activity is beginning to help ease some of this pres- sure. At Redditch Gateway, work is underway on the second phase, which will deliver two state-of-the-art warehouses totalling around 450,000 ft². With modern specifications including 15-metre eaves, expansive yards and enhanced power provision, these facilities are designed to meet the evolving needs of major occupiers and will bring much needed capacity to the market upon completion in 2025/26. Worcester has also enjoyed a buoyant period, with a series of lettings above 10,000 ft² highlighting consistent demand from both logistics operators and SMEs. A standout success has been the letting to MiTek at the Worcester 6 development scheme


– a milestone that not only reinforces the quality and strategic positioning of the scheme but also demonstrates confidence in Worcestershire as a base for ambitious, growth focused businesses. Broader leasing activity across the county has remained encourag- ing, with Worcestershire LEP reporting that 38% of local companies


COMMERCIAL PROPERTY MONTHLY 2025 73


are actively considering moving or expanding. This expansionary mindset is a clear signal of the strength of the local economy, with core markets such as Bromsgrove, Worcester and Wychavon set to benefit from sustained demand. National market trends further underline Worcestershire’s appeal. While UK-wide logistics take up moderated earlier in 2025 amid wider economic caution, demand for energy efficient, well-located facilities remains resilient. The first quarter of 2025 saw an estimated 5. 0 million ft² of logistics space leased nationally – a 20% increase on the same period last year. As seen across Worcestershire, Grade A stock is leading the way, while older space requires repositioning to remain competitive.


The office market continues to evolve, with demand now firmly focused on high quality, flexible and sustainable space. Refurbished offices with strong amenities and parking are letting quickly, while landlords of secondary space face pressure to invest and upgrade. This reflects a broader shift towards a “flight to quality” across the UK. Challenges remain – particularly around safeguarding employ- ment land from residential development – but these risks are coun- terbalanced by clear opportunities. With prime logistics hubs and flagship schemes such as Worcester 6 attracting headline occupiers, Worcestershire is well placed to continue outperforming. Overall, the county’s commercial market is characterised by resilience, adaptabil- ity and optimism. For occupiers, acting early to secure energy effi- cient space remains essential, while landlords who invest in quality and sustainability are best positioned to capture strong demand in one of the Midlands’ most competitive markets


is noticeable that good quality offices do attract stronger levels of demand in the market because of their scarcity. The provision of lifts, aircon, parking and good, modern IT facilities really make a dif- ference. Small suites at the Court in Hampton Bishop have been let at rentals of £14 to £16 per sqft whilst in the city £12 to £14 per sqft has been achieved for larger, good quality suites. The more “ordinary” older space that is available may only achieve £7 to £10 per sqft.


The Old Market Shopping Centre has seen some significant pres- sures like most retail locations with the latest departure to be River Island. Several of the original occupiers have now gone with the most challenging being the loss of Debenhams in 2021. On a positive note, however, MandM Direct have now housed 300 office staff in this space which may help the vibrancy and economy of the city centre. There is still a squeeze on rents in the former prime area around High Town and High Street and some rentals are less than half of what they used to be in more halcyon days. This said, we can find tenants for more secondary retail opportunities where landlords are realistic and flexible, and voids are not alway long.


We find that quality will prove its worth in any market within this county and occupiers are not afraid to pay for it. Freehold properties experience good interest, as do unusual opportunities. We anticipate a similar year ahead with a good level of activity.


For more details please visit www.sunderlands.co.uk


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