Office and industrial rents both increased in Kidderminster and the rest of the Wyre Forest District in 2018, as commercial occupiers moved in to take advantage of the range of choice and relatively low cost of business accommodation in the area, according to Worcestershire’s largest independent commercial property agency GJS Dillon.
Industrial demand in 2018 was strong with take-up of 150,000 sq ft, close to the 10 year average, while office take-up was 12,789 sq ft.
“In a county where there is a shortage of business space, Wyre Forest offers the best opportunity for office and industrial occupiers, with a good choice and some of the lowest rents in Worcestershire. As a result, it is proving increasingly attractive to occupiers looking to re-locate from the neighbouring Black County,” says Andrew Lewis, Head of Agency at GJS Dillon, writing in GJS Dillon’s Worcestershire Commercial Property Market Report 2018/2019.
“Given its manufacturing past, Kidderminster and Wyre Forest have an abundance of commercial stock. Availability and vacancy rates for both office and industrial property are good, and unlike the rest of the county, available stock is more evenly balanced between freehold and leasehold premises, giving occupiers a greater opportunity of owning their premises.
“Industrial market rental levels are increasing, as quality warehouse accommodation is being introduced to the market. However, compared with the rest of the county, at less than £5psf average rental rates are low, presenting leasehold occupiers with affordable space they might not get elsewhere.
“Average industrial sales rates are also low at £65 per sq ft, most likely the result of newer stock being retained by investors and institutional landlords. As more quality options are presented to freeholders, the average sales rate is also expected to improve.
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.