The West Midlands
Logistics/Midlands Update Success at Savills
with its own football pitch and 80 meter yard which we are
guiding £9.75 psf. In
Redditch Blackbrook/Stofords are currently building 286,000 and 160,000 sq ft at Redditch Gateway which will be ready in December and guiding £9.50 psf. DC 2 at Hams Hall is now available which is 269,000 sq ft on Prologis Park, Hams Hall and St Modwen have just completed on another A+ EPC rated unit at the Cofton Centre in Longbridge of 160,000 sq ft.
Given the latest interest rate and the affects felt by developers and funders as we go into the next 6-12 months we expect less new development to be announced but overall rents to continue to rise, even if the pace may start to slow when compared to some 15% rental increases seen last year.
Gravelly Point
The Savills midlands logistics and industrial team are coming off a buoyant 2021 and 2022 where they transacted over 9 million sq ft of industrial space, ranging from multi let estates in the Solihull and Birmingham such as Monkspath Business Park and Elmdon Trading Estate both of which saw rents rise in the last 2 years into double figures and voids reducing to zero last year, to our mid box units where a host were let at schemes such as Connexion at Blyth Valley, Solihull, Prologis
Park at Hams Hall and St Modwen Park, Tamworth.
This was followed through to our larger distribution schemes where record rents were achieved in the Black Country of £8 psf on Logicors Willenhall 246, Prologis Hams
Hall and Segro Park, Coventry
Gateway where over 900,000 sq ft was let in two transactions, to one of the largest lettings of the year in the Midlands where Savills acted for Baytree at Nuneaton where 980,000 sq ft was aquiried by Rhenus.
2023 positions the market at a good
balancing point with strong demand backed by a reasonable amount of stock, the mid box market remains very strong with Savills team completing 5 lettings in May between 25,000 -100,000 sq ft in the West Midlands, but unlike 2021 and 2022 there is a good supply of larger distribution units coming through across the county, such Ergo 354, at Fradley Park where a new 354,000 sq ft unit is available at £7.75 psf.
60
In Birmingham City Centre the largest speculative developed warehouse in the last 20 years Gravelly Point is about to complete, it is an A+ EPC rated warehouse of 285,000 sq ft at the established Gravelly Industrial Park, minutes off J6 M6 complete
We are particularly confident in the sub 100,000 sq ft market where a combination of lack of stock in locations such as Birmingham, Solihull and Coventry combined with lack of development land and occupiers increasingly after better specified units (higher eaves, better insulated, dock doors, etc) to continue to push rents, which is already being demonstrated by 10% growth we have seen this year on certain instructions in the West Midlands. Hopefully 2023 will continue to be another good year for occupiers and developers going forward.
Segro Park Coventry COMMERCIAL PROPERTY MONTHLY 2023
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