The amount of industrial space acquired in the West Midlands last year shot up by more than 20 per cent on the previous year, out-performing every other region in the country, according to new research by national commercial property consultants Lambert Smith Hampton (LSH).

Take-up of industrial and logistics property in the West Midlands was the highest for five years, reaching 14.6 million sq ft. More than half of this was for second-hand space, reflecting a shortage of newly-built units.

The figures were revealed in the latest research report National Industrial and Distribution Report 2011, just published by LSH, which also reveals that take-up of industrial accommodation in the West Midlands exceeded property coming onto the market for the first time in two years.

Cris Maxim of LSH's Birmingham-based Industrial and Logistics team said, "A lack of speculative development over previous years and a focus on the big shed market has resulted in a shortage of good quality buildings in the 20,000 - 50,000 sq ft size range."

"Last year's take-up was the highest for five years, reflecting the trend nationally, and the West Midlands out-performed other areas of the country in both take-up and availability. We believe the improvement we have seen will continue throughout 2011, driven largely by the distribution market, and in particular the retail, internet, automotive and food and drink sectors. We also believe that rents, which have remained stable over the last year, will continue to hold steady," he added. 

The figures also show high levels of take-up and availability in the East Midlands. In that region, significant demand in the large distribution sector has led to potential shortages of property, which could result in higher rents and reduced incentives.

Ian Kibble, Regional Director in the Birmingham office of LSH said, "As we progress through 2011 it is unlikely that sufficient prime space will be available to meet the increased demand in the market. Developers have already responded to this by becoming active in strategic land buying throughout the year with an expected return to speculative development in late 2011, early 2012 where demand is strong and space shortage most acute."

"We also anticipate increased activity in the design and build market, which is already happening, and a hardening in the incentives available for existing buildings, which will result in rental growth during 2012," he said.

For more information on Lambert Smith Hampton, please visit their website here: www.lsh.co.uk