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Auto sector leads west Midland region’s warehouse scene

The automotive sector has taken total West Midlands warehouse lettings to 1.7m sq. ft.  in the first half of 2015.

Lambert Smith Hampton say the auto sector led the region’s warehouse scene. The half-year saw seven deals of more than 100,000 sq ft, with the biggest deal seeing Dunelm taking 525,000 sq ft at Prologis Park in Stoke-on-Trent.

Other deals of note included Jaguar Land Rover snapping up 312,000 sq ft at DC4 Prologis Park Midpoint in Minworth and Screwfix taking 230,000 sq ft at DC4 Prologis Park Midpoint in Staffordshire.

Matt Tilt, associate director of industrial and logistics agency at LSH in Birmingham, said:   “In the big box sector, major pre-lets are driving a boom of development with Prologis set to start work on DC7 Ryton imminently having secured deals of more than 450,000 sq. ft with UK Mail  and Jaguar Land Rover.  The challenge remains however that much of the big box development in the region is pre-let so there will remain supply issues in that part of the market for some time to come.”

“In the mid-box sector we are currently seeing some welcome speculative builds with developers like St Modwen and IM very active in the region with schemes planned at diverse locations ranging from The Hub in Birmingham and Burton Gateway in Staffordshire.

Rents are now around £6.50 a sq ft for new floorspace.

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