For the first time ever, the West Midlands warehouse property market has outpaced the East Midlands.
The East Midlands – home to the golden triangle of favoured logistics sites – scored just 4.24m sq ft in warehouse deals in 2017, comparted to 5.86m in the West Midlands, according to Savills latest Big Shed Briefing.
The upset was caused by a surge in West Midlands build-to-suit deals. Major transactions in the West Midlands include Meggit’s 440,000 sq ft acquisition in Coventry, and Kimal’s 140,000sq ft acquisition in Worcester.
Full year industrial take up in the East Midlands was significantly down on last year’s record take-up of 7m sq ft, say Savills. Deals included Decathlon taking 260,000 sq ft and Stanley Black & Decker taking 256,000 sq ft in build to suit deals, both in Northampton.
Ranjit Gill, industrial director at Savills Birmingham, said: “Industrial supply in the Midlands appears robust, but particularly in the West Midlands there is an imbalance in terms of size range and more units above 200,000 sq ft are certainly needed. Build to suit demand levels remain strong across the board and throughout 2018 we expect prime Grade A sites such as East Midlands Gateway and DIRFT III to absorb an increasing amount of the larger strategic national requirements.”