Strong Prices Achieved For New Small Industrial Units Underscores Bromsgrove's Popularity As Distribution And Manufacturing LocationApril 2011
Good prices are being achieved for new small freehold industrial property in Bromsgrove, making it one of the most expensive locations along the M42/M5 corridor, but this is in contrast to leasehold property in the town, which is proving harder to dispose of, says a leading Bromsgrove property agent.
According to John Dillon, managing director of Bromsgrove based property consultancy JP Dillon Commercial Property Consultants, new small industrial freehold units in Bromsgrove are around the £95 psf mark.
“This price reflects the shortage of new available units in Bromsgrove, but also the town’s excellent location and demographics, which is attracting existing companies and entrepreneurs to re-locate or to start up their businesses in the area,” says Mr Dillon.
“At present only new freehold units of up to 5,000 sq ft are commanding this top price, with second hand freehold units lagging behind, but there is still a general shortage of older freehold units in the town, making this a good time to sell,” says Mr Dillon.
“At present the industrial market in Bromsgrove is one of two halves, as leasehold property is proving more difficult to dispose of. However, we are seeing a gradual increase in the level of enquiries about local leasehold units. These enquiries are both from businesses already in Bromsgrove looking to expand or to consolidate into new premises, and from those looking to re-locate into the town, which, as the only dedicated commercial agent in Bromsgrove, tend to come to us first,” explains Mr Dillon.
“Businesses want to be in Bromsgrove initially for its excellent communications, with both the M42 and M5 providing access to the national motorway network, and its proximity to Birmingham is also proving to be a draw. The city is only half an hour drive away for a meeting, but being based in Bromsgrove removes the headache of traffic congestion on a daily basis.”
According to Mr Dillon, the pro-active nature of Bromsgrove District Council and Worcestershire County Council in providing a business friendly environment is also helping to attract companies and jobs to the town.
He says: “Being on the spot in the town, as a dedicated and specialist Bromsgrove and Worcestershire agent, we work closely with the two local authorities to provide key information, such as employment figures, skills levels, available grant aid, and areas where key staff can live, which, in addition to our comprehensive knowledge of property which is available both on- and off-market, is vital for any business looking to re-locate to the town,” says Mr Dillon.
The local authorities, along with other local public bodies, as well as the Chamber of Commerce and its members have also played an active role in developing Bromsgrove’s Draft Area Action Plan, one of the first in the country in the new era of localism, which has seen the town recognised as test case by Central Government for the consolidation and shared usage of public sector functions and services.
“With this framework of local support in place, the strong prices are not deterring the purchasers of new industrial units. Indeed, Bromsgrove is fortunate in having developers who are prepared to continue to supply new speculative industrial units at Saxon Business Park and Bromsgrove Technology Park, and the town still has sufficient second hand stock, both freehold and leasehold, to cope with demand for a while yet,” concludes Mr Dillon.Return to News