It has been revealed by property agents GJS Dillon that Worcestershire industrial property prices will reach a new record high in 2017, due to the continuing decline in the market and the resulting shortage of industrial space in the area.
The new heights in property price are expected to affect both new and quality second hand industrial units next year, as this ongoing shortage is leading to many businesses spending more time and money searching for new premises and often missing out once they have found a place suitable.
“Demand is far outstripping supply for industrial units between 3,000 sq ft and 40,000 sq ft, as manufacturing and distribution businesses in the county continue to invest in new premises and show increasing confidence in the post-Brexit economy” commented John Dillon, the managing director at GJS Dillon Limited. “There is very little space coming onto the market at present, and this is unlikely to change in 2017, as few speculative developments are planned.”
GJS Dillon has offices in Droitwich, Worcester and Bromsgrove, and the company has disposed of more than 80,000 sq ft of industrial property in the last three months, so John Dillon is in the perfect position to speak about these current issues for the area.
“This on-going shortage is placing upwards pressure on prices and next year new build industrial units up to 5,000 sq ft in the right location in the county will reach £120psf, while similar units to rent will break the £7psf barrier” continued Dillon. “Although they are not going to achieve the same levels as for new builds, prices of good quality second hand units in established business park locations are increasing quarter on quarter, and when they do become available are highly sought after, frequently going to best and final bids.”
So if 2017 does see these record property prices in Worcestershire, we can only hope for the problem of the declining market to be resolved as quickly as possible.