Pictured above: David Binks

Last year saw a boom in transactions involving the warehouse and distribution sector, according to Cushman & Wakefield.

Nationally, the company saw shed transactions double, from 10.1 million sq ft in 2009, to 22 million sq ft. And in the Midlands, there was a similar increase, from 4.75 million sq ft in 2009 to 8 million sq ft.

David Binks, of the Birmingham office of Cushman & Wakefield, said that the huge rise in transactions was close to being a record year for take-up in the warehousing and distribution sector, despite the gloomy economic background.

He said: "Part of the massive take-up was driven by the availability of a lot of existing stock, which was snapped up by organisations which were ready, willing and able to move. 

"Because of this, they were able to take advantage of exceptionally competitive prices, both in freehold and leasehold terms."

He added that with much of the available stock now sold or leased, the downside of the boom was that companies who were coming into the market for property would find that they had far less choice.

Not only that, but prospective occupiers might be forced to compromise on the quality - and possibly the specification - of any building they required. 

David said:  "They might have to give themselves longer to find the right building, or they will have to have something built to meet their needs. 

"If they go down the latter route they will need to give themselves the best part of 12 to 18 months to identify a site, get planning and get the specification and legal documentation agreed. So they will have to think a long time ahead."

He said the lack of available buildings may see a reduction in the level of financial incentives that landlords have been forced to offer to get the market moving. That would mean less flexibility on rent levels, and also rent free periods and other inducements.

Looking further ahead, companies will have to accept that they may not be able to move to the exact area they want to be in, he warned.

"They are not going to be able to be too prescriptive about where they want to locate to," he said. "They will need to give themselves more choice."