Industrial sector will be king.
"The office market in and around Worcestershire will also continue to improve, but industrial and distribution property will undoubtedly offer the best opportunity for local landlords and investors, certainly for the first six months of 2011," said Mr Dillon, whose property consultancy specialises in commercial property across Worcestershire.
"There is a general shortage of smaller industrial units throughout the county, especially around Bromsgrove, (due to its close proximity to both the M5 and M42) where there is a micro-market boosting freehold prices by as much as between 25 per cent and 50 per cent for new readily available premises," added Mr Dillon.
"The same is true on a county-wide basis for larger industrial and distribution sites. This general shortage of ready to go sites and lack of second hand stock will see industrial and distribution rents and freehold values climb steadily in 2011, providing an opportunity for landlords and developers who can quickly bring the right sites and stock to market to meet the demand," said Mr Dillon.
"The 49 acres that we are marketing at Norton Parkway at Junction 7 of the M5 motorway will help meet some of this demand, but we are keen to use our local knowledge to help landlords and developers bring their sites to market promptly," said Mr Dillon.
According to Mr Dillon, the office market will continue to pick up in 2011. He said: "There have been an encouraging number of deals, both lettings and freeholds, on office units of between 2,000 and 6,000 sq ft in the final quarter of 2010. Many of these had been on the market for some time, and this trend seems set to continue.
"Throughout 2011, finance for freehold acquisitions will remain tight, but switched-on cash rich individuals, companies and landlords have been taking advantage of freehold prices which are probably as low as they are going to get, while occupiers looking for leasehold premises have agreed very tenant friendly lease terms with rent free periods at the outset of their lease. While we may see some further opportunities come onto the market as the banks start to offload some of the property assets they acquired as a result of businesses failing, freehold prices will continue to firm up, while rental incentives will start to diminish in 2011.
"Expert local knowledge will therefore become even more important to both sides in a property transaction, so that they are confident they have achieved the best possible deal in an ever changing market."
From its base at 13 New Road in Bromsgrove, JP Dillon Commercial Property Consultants focuses on the sale, letting and acquisition of all types of commercial and industrial premises throughout Worcestershire and the M5 and A38 corridors. The company can be contacted on telephone 01527 872525 or by email at email@example.com
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|Publication:||The Birmingham Post (England)|
|Date:||Mar 3, 2011|
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