Pictured above: Simon Lloyd, Head of Industrial Agency
DTZ
The latest DTZ Research UK Property Times Industrial market
report has revealed that the overall volume of available space of
buildings over 50,000 sq ft fell in Q2 due to sustained high levels
of grade A take-up and a reduced rate of return of grade B and C
stock.
Total take-up fell 15 per cent although the proportion of grade
A space remained elevated at 48 per cent of the total, with the
outlook for prime headline rents set to remain stable.
The report predicts that the availability of large volumes of
grade B space means the market will prove to be a battleground for
landlords during 2010, with many looking to customise stock to
attract smaller local occupiers.
A slowdown in the return of secondhand buildings over 50,000 sq
ft back to the market means DTZ anticipates that availability will
peak in 2010. Annual take-up in 2010 is set to increase by a third
on 2009 volumes, driven mainly by tenants taking grade A or good
quality grade B space.
Take-up in the West Midlands increased 15 per cent in Q2 with
grade A space accounting for half of all transactions. The average
deal size fell to 120,000 sq ft with the biggest deal of the
quarter being the 230,00 sq ft letting to Gap UK at ProLogis Park
in Stafford. Any future increase in availability volumes is likely
to be driven by the return of second-hand stock as companies like
Jaguar Land Rover consolidate and close plants.
Simon Lloyd, Director in Industrial Agency at DTZ, commented:
"Take-up in the West Midlands has outperformed the UK average which
is a reflection of the superb location, which offers first class
access to an area with significant population density."