Wiggins Lockett Thompson have successfully let a number of yards in the region over the past few months.
Anthony Wiggins, who handles lettings and oversaw the completion of the recent deals, highlights the lack of availability in the market at present for this sort of property:
“The development of former industrial land for housing together with the increase in value of land for industrial development has meant that there are a distinct lack of areas of land and facilities for companies simply wishing to occupy yard space for storage, vehicles and other comparably basic commercial uses. Land values for sale for commercial uses are almost exclusively based on their developability for buildings and the potential rent or freehold value of those buildings once created. At present it simply does not stack up to acquire land simply to concrete over it or lay scalping, meaning that companies in need of open area of land are struggling and often forced to look further afield which is a significant financial disadvantage for their companies, especially those with increasing transport costs.
“Lettings we have recently completed were for surplus yard areas on the outskirts of Shrewsbury, in the commercial areas of Telford and in the Black Country. Enquiries are still being received for companies becoming ever more frustrated at the lack of opportunity and what they perceive to be intransigence of private developers who have acquired land and wish to maximise their profits on it. Industrial estates are often choked in the evenings as they become unsecure lorry parks and planners of areas of future commercial developments on the edge of conurbations such as Birmingham need to give significant consideration to hauliers and their needs.
“We have a number of live searches for companies in the Black Country looking for between 2 and 5 acres of open storage land and these companies would be prepared to have claw back arrangements on any acquisition attributable to future more valuable development. If you are aware of any land that you feel might be suitable for this, that is unable to be developed at present due to contamination or other practical difficulties, we would be pleased to hear from you.”
-Anthony Wiggins MRICS
Share this post: