The value of Worcestershire industrial property has increased by more than 25% in the past two years, with some hotspots seeing an uplift of up to 50%, according to a leading commercial property valuation expert.
Jonathan Mountford, Director at Worcestershire commercial property consultancy GJS Dillon Limited, which has offices in Droitwich, Worcester and Bromsgrove, says that values of both new and second hand industrial units have risen significantly over the past two years, and that this trend is set to continue, with the increasing shortage of manufacturing, warehousing and distribution properties across the county.
He says: “On average industrial property has increased in value by more than one quarter in the past 24 months. However, in some locations high demand has driven these values much higher. As long as there is a shortage of industrial property in the county, this trend is set to continue.”
Latest figures published by GJS Dillon have shown that there is only a three months’ supply of manufacturing, warehousing and distribution space available in Bromsgrove, with shortages of similar properties in other parts of the county.
Mr Mountford continues: “It is vital that owners and occupiers of industrial properties are aware of their true market and reinstatement values, as these can have real impacts on sales, acquisition and investment strategies, and on insurance premiums, for both re-building and business interruption policies.
“Around four in five commercial properties are up to 60% underinsured. This means that the insurance company would only pay out 40% of the building costs in the event of a total loss of the premises, a shortfall which most businesses would not survive. We recommend annual valuations, so that owners and occupiers are fully aware of the potential consequences.”