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The automotive sector is tightening its grip on Midlands logistics floorspace

The automotive sector is tightening its grip on Midlands logistics floorspace

New data from Savills shows that the auto sector took 20 per cent of West Midlands logistics floorspace in the first six months of 2016.  This is sharply up from 5 per cent in the whole of 2009.

Savills say nominal take-up has increased vastly. In 2009 total auto sector deals accounted for 157,000 sq ft. In the first six months of 2016 the auto sector took 470,000 sq ft – and more deals are anticipated.

The figures show the increasing competition from the auto sector faced by other logistics users. Completion has forced rents up to and beyond £6.50 a sq ft.

Pressure from the auto sector is unlikely to ease. Figures from the Society of Motor Manufacturers show July was consecutive month of growth for UK car makers, with output up 7.6% to 126,566 units. Year to year performance grew by 12.3 per cent, the best performance in 16 years.
Demand was also up in July both at home and abroad with a 14.1% increase in output for the domestic market and exports up 6.0% to 101,184 units

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