Citation
(2001), "Industry growth in Birmingham", Property Management, Vol. 19 No. 4. https://doi.org/10.1108/pm.2001.11319dab.019
Publisher
:Emerald Group Publishing Limited
Copyright © 2001, MCB UP Limited
Industry growth in Birmingham
Industry growth in Birmingham
The warehouse and industrial market in the West Midlands has finally demonstrated the growth it had been promising, new research shows. But the extra demand has pushed the rents to a new high. The report by property consultants Phoenix Beard, published every six months, reveals the sector has achieved its potential during the last 12 months, which had been predicted for it in the past five years. It shows Birmingham has moved from general benchmark rents of between £4.50 and £4.75 per square foot to between £5 and £5.25 per square foot – and in certain prime cases higher than this.
Despite several national issues threatening the area with disaster during the course of the year, such as the threatened closure of Longbridge and the conflicts between sterling and the Euro, manufacturers have been able to deal with the situation. On the supply side of the equation, the market has been more dramatically affected. The relative increase in demand has had a substantial impact on the already limited supply of both available land and buildings.
Occupiers and developers looking for a site in excess of ten acres would find it difficult to identify any in the seven boroughs of the West Midlands. The availability of second-hand property across the size ranges has also been reduced. The lack of space has led to the breaking of new ground for real rental levels ranging from £6.00 per square foot at Solar Park in Solihull to £5.40 per square foot at Bromford Gate in East Birmingham.