A shortage of office and industrial units in Bromsgrove, coupled with high demand for space, pushed up commercial property rents and freehold prices to record levels in the town in 2018, according to Worcestershire’s largest independent commercial property agency GJS Dillon.
Only seven months’ supply of industrial property and eight months’ supply of office space are presently available in Bromsgrove, with the industrial vacancy rate of 0.9% the lowest across Worcestershire.
“Lack of supply helped push up average industrial rents by 10%, and average office rents by 6%, and we expect this rate of growth to continue in 2019. We also expect freehold prices to continue to increase to £150psf for office space and to £90psf for industrial units in 2019,” says Andrew Lewis, Head of Agency at GJS Dillon, writing in GJS Dillon’s Worcestershire Commercial Property Market Report 2018/2019.
“Demand in Bromsgrove is especially high for smaller and medium size offices and industrial units to rent and to buy, perhaps because it is home to the largest number of businesses, particularly micro-enterprises (0 – 9 employees) and small-enterprises (10 – 49 employees) of any district in the county.”
Lack of supply resulted in take-up of industrial space falling in 2018 by nearly 40%, with 81,000 sq ft of industrial space being transacted. The office market improved slightly on 2017 take-up levels, increasing by some 10%, but still remained well below the 10 year average of 54,000 sq ft.
“Bromsgrove is a victim of its own success, as it attracts more businesses and encourages start-ups,” continues Mr Lewis. “Employers want to be based in the town and grow their businesses there. It has an excellent location, with access to the M42 and M5 and proximity to Birmingham.
“Bromsgrove District Council is aware of the lack of supply of business space and, along with Worcestershire LEP, is working with landowners, property developers and property agents to change this situation. One solution would be to designate more land for employment use around Junction 1 of the M42, where demand is already greatest for both office and industrial space.”
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 www.gjsdillon.co.uk/marketreport or from Andrew Lewis on tel. 01527 872525 or email. email@example.com.