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2.
May
2017.
WORCESTERSHIRE FREEHOLD OFFICE SHORTAGE TO PUSH UP PRICES

PRESS RELEASE

2 May 2017

 

WORCESTERSHIRE FREEHOLD OFFICE SHORTAGE TO PUSH UP PRICES

 

A shortage of freehold office accommodation in Worcestershire will push up prices to record levels by the end of 2017, according to one of the county’s leading commercial property agents.

 

John Dillon, Managing Director at Worcestershire commercial property consultancy and Chartered Surveyors GJS Dillon, says that there is less than 14 months’ supply of freehold offices in the county to meet the needs of businesses looking to expand or re-locate into the county.

 

He says: “Freehold office space is the most sought after, with many business owners keen to acquire for themselves property used by their business.  With just over a one year’s supply available, much less in some of the main county towns, prices will be driven up well beyond the present capital values of £190 per sq ft for top Grade A space.

 

“With continuing record low interest rates, the increasing willingness of the banks to lend to acquire property, and the popularity of acquiring business premises through Self-Administered Pension Schemes, the desire for freeholds is likely to continue throughout 2017.”

 

GJS Dillon’s annual review of the Worcestershire office market, using its own knowledge and figures from Co-Star, revealed that total availability of office stock on the market in February 2017 was 540,401 sq ft, with 182,659 sq ft available freehold.  Average annual freehold take-up is 162,791 sq ft.

 

Mr Dillon says: “At the same time as the Brexit effect appears to have boosted locally owned businesses, encouraging freehold purchases, activity by many European companies which used to look to rent commercial property in Worcestershire has slowed, meaning that there is presently over two years supply of office space available to rent.  However, good quality grade A office accommodation within the county is now achieving rents of up to £18 per sq ft.”

 

According to Mr Dillon, the lack of freehold office accommodation in Worcestershire can only be tackled by concerted action.  He says: “We need to encourage developers to build new office premises, particularly small freehold offices between 1,000 and 5,000 sq ft.  We are working with local councils, landowners, developers and funders to try to achieve this, and have presented the findings of our Worcestershire office and industrial market reviews to a number of organisations.    Any other organisation which would like to benefit from our in-depth research should contact me to arrange a presentation.”

 

With offices in Droitwich, Worcester, and Bromsgrove, GJS Dillon is a firm of Chartered Surveyors which offers a comprehensive commercial property service, including commercial agency, commercial property management, valuations, and building consultancy, and unrivalled geographical coverage, throughout Worcestershire and along the M5 and A38 corridors.  GJS Dillon can be contacted by telephone on either tel. 01527 872525 or tel. 01905 676169 or by email: info@gjsdillon.co.uk

 

Picture caption: Lombard House and The Forum Building, Stourport on Severn, Worcestershire, sold by GJS Dillon for £1.3m in March 2017, the largest office sale in Worcestershire in the last 18 months.