Take-up of industrial property in and around Worcester increased substantially in 2018, attracting new occupiers and jobs to the city, according to Worcestershire’s largest independent commercial property agency GJS Dillon.
Total take-up of industrial property grew by more than 275% in 2018 to 258,921 sq ft in the city of Worcester, headlined by the letting of 110,000 sq ft at Shire Business Park close to Junction 6 of the M5. However, add the success of the industrial development at Worcester Six, nominally in the Wychavon District, to this, and the take-up increases to more than 572,047 sq ft.
“Worcester boasts a strong and successful industrial leasehold market with more than 30 lettings as opposed to 10 freehold purchases in 2018, which has led to upwards pressure on average market rents, increasing by 50p to £6.26psf,” says Andrew Lewis, Head of Agency at GJS Dillon, writing in GJS Dillon’s Worcestershire Commercial Property Market Report 2018/2019.
“Unlike other parts of the county, Worcester is benefitting from new industrial and office developments. However, much of this, especially the industrial space, is targeted at larger occupiers, with fewer smaller units required by start-up and growing businesses currently available.”
Most industrial transactions took place around the M5 motorway junctions and to the east of the city centre, with few deals west of the River Severn. The same picture is true for the office market, where in the past five years only 7.5% of transactions have occurred west of the Severn. The city centre too, is becoming a secondary office location with only 14% of the available space, as the office “sweet spot” also moves east towards the M5.
Mr Lewis says: “Worcester must balance the needs of its residential, office and industrial users. More emphasis should be put back on the city centre for offices, where struggling retail units could be converted, while the upgraded Southern Link Road should unlock key sites to the west of the city for office development.”
GJS Dillon produces an annual review of Worcestershire’s commercial property market, based on figures and analysis from CoStar, which it uses to advise vendors, purchasers, developers, landlords and tenants. Further details about the 2018/2019 market report can be found at https://www.gjsdillon.co.uk/marketreport or from Andrew Lewis on tel. 01905 676169 or email. firstname.lastname@example.org.