Worcestershire Commercial Property Market Report 2021
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Working in
partnership with
Worcestershire Commercial Property
Market Report 2021
Worcestershire Commercial Property
Market Report 2021
What can I say? A year like no other and one that most people would want to forget!
As a business owner, I can remember the fear and dread of sitting all the staff down
in March 2020 telling them to go home and stay safe. The commercial agency
world ground to a halt, but, as we came out of the first lockdown, we saw signs of
the market recovering with transactions completing across all sectors, including the
severely affected office market. While the office and industrial property market in
the UK’s largest cities was severely impacted, the picture was not as bleak here in
Worcestershire during 2020, a theme reflected in this year’s Report.
John Dillon This year we have collaborated with the Worcestershire Local Enterprise Partnership
Managing Director, to bring you this report. Their insight into how businesses’ mentality and requirements
GJS Dillon shifted during 2020 has proved invaluable and I would like to thank them for their
contribution.
I could not finish without praising my wonderful, dedicated and loyal team here at
GJS Dillon. The phrase “you know who your friends are in times of adversity” could
not be more relevant.
We have stayed together as a team and like most businesses, we now feel that
if we can get through the COVID year together, we can get through anything
– thank you Team GJS Dillon!
Top 5 take-aways
1 Recovery from COVID-19
pandemic underway
4 Average deal size for
offices remains stable
with less downsizing
Office take-up recovering
2 but availability increasing
than expected
5 Lack of freehold
3 Worcestershire’s central
location leads to resilient
opportunities led to
capital growth in all
industrial market sectors and submarkets
© GJS Dillon 2021
Details of GJS Dillon can be viewed on our website www.gjsdillon.co.uk. This document is for general information purposes only. The information in it is believed to be correct and was
obtained from the Worcestershire LEP in March 2021. The opinions detailed within constitute our judgement as of this date but are subject to change. Reliance should not be placed
upon the information, forecasts and opinions set out herein for the purpose of any particular transaction, and no responsibility or liability is accepted by GJS Dillon for any direct,
indirect or consequential loss of damage which may result from any such reliance or other use thereof. All rights reserved. No part of this publication may be transmitted or reproduced
in any material form by any means, electronic, recording, mechanical, photocopying or otherwise, or stored in any information storage or retrieval system of any nature, without
the prior written permission of the copyright holder, except in accordance with the provisions of the Copyright Designs and Patents Act 1988. Designed by The Magic Tractor. Enjoy!
Making Worcestershire a Connected,
Creative, Dynamic Economy For All
Getting Building Fund to Boost Economic Growth
Worcestershire is a county which has an enticing offer These are shovel-ready infrastructure projects designed
for those looking to get the best of urban and rural life. to boost economic growth and fuel local recovery
and jobs as part of the £900m Government’s Getting
The Worcestershire Local Enterprise Partnership Building Fund, announced in Summer 2020.
(LEP) works closely with various partners across the
county to deliver and promote various projects and The LEP secured a phenomenal £12m allocation
programmes which are helping to create their vision - for Worcestershire to improve the County’s digital &
“A connected, creative, dynamic economy for all.” physical infrastructure and connectivity; environmental
sustainability and decarbonisation agenda and increase
A focus on some of the Worcestershire LEP’s work has opportunities for business growth. This investment will also
been on supporting businesses with property availability attract a further £30m of public sector match funding and
across the county. The is set to deliver a welcome boost to the local economy.
Worcestershire LEP have
been leading work on To find out more about the Worcestershire Getting
the county’s Getting Building Fund, visit the Worcestershire LEP’s website
Building Fund projects. www.wlep.co.uk/current-projects/getting-building-fund
3 Examples of Projects Being Malvern Technology Park
Supported Across The County The ambition for Malvern Technology Park is to create a
knowledge and innovation based, sustainable business
environment, of regional and international reach &
Vale Business Park Expansion merit, to attract inward investment and provide capacity
for maturing incumbent companies to expand locally.
Back in 2020, GJS Dillon’s Worcestershire Commercial In turn this will further support the growth potential of
Property Market Report identified a shortage of Worcestershire’s Cyber, IT and Defence target sector and
commercial property suitable for small to medium retain high value jobs locally.
enterprises (SME) and the requirement for new
development (sub 25,000 sq ft) to support this market.
Rural Gigabit Connectivity
The Vale Park Expansion project will support the growth Alongside the needs of infrastructure, there is a growing
potential of between 7-10 small to medium businesses, need for digital connectivity across the county. This local
through the delivery of 10 industrial starter units on land project through the Getting Building Fund will improve digital
owned by Wychavon District Council and help fill the connectivity for Worcestershire’s rural and hard to reach
identified gap in the market for small-medium scale communities and businesses and help meet the Government’s
quality commercial space. target of 85% Gigabit capable broadband by 2025.
4
For more information visit www.wlep.co.uk
Inspiring Young
Worcestershire’s Commercial People’s Career
Technology Accelerator Options
Alongside the developments through
With developments to the Malvern Technology Park mentioned the Getting Building Fund programme,
earlier, technology and encouraging innovation within business is the Worcestershire LEP continues to
another ambition of the Worcestershire LEP’s. To lead this forward, deliver projects to ensure Worcestershire
BetaDen, Worcestershire’s Commercial Technology Accelerator, is is an attractive place for businesses.
based at the Malvern Hills Science Park and is successful supporting One aim is to inspire and inform young
cohorts of businesses to people about the variety of career
develop their technology options available within the county.
products and services,
To support this ambition, the
accelerating them to
Worcestershire LEP and Worcestershire
being market ready.
County Council have launched the
Worcestershire Jobs website. This
The BetaDen team have successfully worked with 3 cohorts of new website simplifies the process of
businesses and have supported them to take their products searching for jobs, training courses
to market with landmark contract wins for these businesses and further educational routes and
from the likes of HS2, the NHS, Amazon and Royal Mail. apprenticeships by listing them
all in one easy to use place.
BetaDen is also co-located with Worcestershire’s Commercial
5G Test Bed, offering members of their cohorts’ access Gone are the days of trawling across
to develop their products on 5G technology. multiple job websites, Worcestershire
Jobs collates all the local job
information and lists it in one place.
The 5G testbed service for business offers a variety of
Users can even filter the results based
potential entry points and customer journeys for small,
on their interests or key skills.
medium and large businesses to ensure that the technology
can be best utilised to enable businesses to grow.
If you’d like to discover more about the 5G testbed and how it could
be used with your business, visit the Worcestershire LEP website
www.wlep.co.uk/current-projects/worcestershire-5g
Discover more about Worcestershire
Jobs and the LEP’s Skills programmes by
To find out more about BetaDen, visit www.beta-den.com
visiting www.wlep.co.uk/current-projects/
employment-skills
The County’s Business Champions
Worcestershire has plenty to offer starting a business, to growing, running Worcestershire Business Central are also
businesses and alongside the packages or even funding a business. The team able to help businesses with finding a
mentioned, businesses in the county are are your business champion, working new premise in Worcestershire, working
also supported by the county’s Growth extensively to support Worcestershire alongside various partners across
Hub, Worcestershire Business Central. businesses with delivering support the county, including GJS Dillon.
programmes and promoting grant
The Worcestershire Business Central team funding as well as much more, all
are on hand to help businesses of any to ensure businesses are given the
size with support they may need from support they need to help them grow.
Find out more about how your business could be supported by Worcestershire Business Central visit www.business-central.co.uk
5
A PASSION FOR PEOPLE
A PASSION FOR PEOPLE
Office Sub-Markets 2020
Total Take-Up Vacancy Avg. Deal Size
(ft2) Rate (ft2)
Bromsgrove 23,110 3.3% 1,216
Malvern Hills 10,940 5.2% 2,188
Redditch 24,255 3.0% 2,695
Worcester 49,507 1.3% 1,904
Wychavon 28,685 3.6% 2,207
Wyre Forest 18,704 1.0% 2,672
Birmingham
M5
Wyre Forest
M42
Bromsgrove
Redditch
Worcester
Wychavon
Malvern
Hills
London
Cardiff M50
M5
Bristol
8
Bromsgrove Office
Bromsgrove
23,110 3.3 1,216 -35 18.24
Total Take-up (ft2) Avg. Deal Size vs. 2020 Headline Rent
Vacancy Rate (%) Average Deal Size (ft2)
Freehold and leasehold 10 Year Average (£ per ft2)
Total Take-up Vacancy Rate Headline Rent
(000 ft2) (%) (£ per ft2)
As office occupiers migrate out of Birmingham city
centre as a result of the COVID pandemic, Bromsgrove’s
popularity as an office location has increased.
Demand Supply Rental and Capital Values
Demand for offices in Bromsgrove has Businesses which may have occupied Headline rents in Bromsgrove have
remained resilient as the route out of a whole building prior to the start of unsurprisingly plateaued following the
the pandemic has been made clear. the pandemic are now changing the previous three year upwards trajectory,
With the lowest average deal size in way they use their office space, with a however the stats should be reviewed
the county, the small floor plates that lot of single floors within office buildings with caution as there have been so
can be found on the business parks becoming readily available. This type of few deals that have been undertaken
have attracted companies looking to accommodation is normally of a good within the district’s Grade A market.
downsize or retain a skeleton of office- standard having been well maintained They still remain the highest within
based staff whilst others work remotely. by the previous occupier, who is more the county, reflective of the district’s
often than not the building owner geographical location, its proximity to
Occupiers moving out of Birmingham themselves simply reducing down the the M5 & M42 motorway junctions and
have also appreciated Bromsgrove’s office space that they require for their the high number of small office suites in
connectivity, which is within easy own business. the area.
commuting distance for staff, whilst also
being cost effective for the business owner.
Outlook
Transaction volumes have remained the most resilient within the county over the past 12 months,
reflective of Bromsgrove’s proximity to Birmingham conurbation and the desire for some office
occupiers to move out of the city centre. In line with the trend of downsizing and the area’s strong
SME business base, we think that small office suites will remain popular for some time to come.
9
Office Malvern Hills
Malvern Hills
10,940 5.2 2,188 -7 14.89
Total Take-up (ft2) Avg. Deal Size vs. 2020 Headline Rent
Vacancy Rate (%) Average Deal Size (ft2)
Freehold and leasehold 10 Year Average (£ per ft2)
Total Take-up Vacancy Rate Headline Rent
(000 ft2) (%) (£ per ft2)
The Malvern Hills district remained the most consistent
market in comparison to previous years’ performance
as its position as a tech hub remains unique within
Worcestershire and the wider West Midlands.
Demand Supply Rental and Capital Values
With the second smallest amount of Vacancy rates have remained the most Average market rents have followed
total stock in Worcestershire, Malvern stable out of all the districts, however the trend of 2019 by decreasing, which
Hills district’s performance on lettings this figure remains inflated by the is a result of a handful of large lettings
has been limited, with one being over Bernard Lovell Building – 64,312 sq ft of of dated office accommodation.
5,000 sq ft to a healthcare operator in office space on Malvern Technology Headline rents have increased slightly
Martley. This led to the average deal Park that is available to lease. which shows the requirement in the
size being 20% higher than the 10 year area for quality space.
average. This is set to change as the The supply pipeline (current availability
next phase of the Malvern Hills Science vs. take-up) has increased, which The average sales rate improved slightly
Park is developed, along with the final is reflective of the new planned on the previous year, as the year prior
building at Enigma Science Park, which developments mentioned above. was dominated by the sale of two large
will increase the overall stock level of This high quality space remains much existing office buildings around Spring
office accommodation in the area. needed to attract tech occupiers. Lane and Grovewood Road.
Outlook
Whilst the Malvern Hills district may not benefit from the connectivity of other districts, it does benefit
from being situated in an attractive location adjacent to Herefordshire and the Malvern Hills.
As companies’ requirements shift towards creating employment spaces their staff enjoy working in,
we think the area will start to attract companies outside of those in the tech centre.
10Redditch Office
Redditch
24,255 3 2,695 +31 11.68
Total Take-up (ft2) Avg. Deal Size vs. 2020 Headline Rent
Vacancy Rate (%) Average Deal Size (ft2)
Freehold and leasehold 10 Year Average (£ per ft2)
Total Take-up Vacancy Rate Headline Rent
(000 ft2) (%) (£ per ft2)
Quality open floor plates remain popular with occupiers
relocating from Birmingham and the M42 corridor,
leading to the largest average deal size in the county.
Demand Supply Rental and Capital Values
Boasting high levels of quality open There remains a critically low amount Headline rental levels increased on
plan space led to the largest average of freehold space available within the the year prior, perhaps owing to the
deal size in the county at 2,695 sq ft, Redditch submarket, something which increased competition for good quality,
an increase of 31% on the previous has changed during the pandemic. low maintenance and therefore long-
year. The district also has much larger This has created a further struggle for term cost-effective space.
floor plates which will be in demand owner occupiers who face competition
from national occupiers as they look to from the investment market, which is still The average sales rate is amongst
downsize yet remain in well-connected particularly active within Redditch. the highest in the county as owner
space. occupiers compete against the
A shortage of supply of modern office investment market. As the investment
accommodation has caused the market recovers from the pandemic this
disparity between headline and average may lead to a positive shift in favour of
rents to decrease to almost nothing. owner occupiers.
Outlook
As the draw of city centre offices lessens, Redditch is well positioned to take advantage of
capturing medium to large sized businesses looking to relocate to a cost-effective business centre.
Consideration must still be given to the freehold market which has struggled against the investment
market in recent years.
11Office Worcester
Worcester
49,507 1.3 1,904 -14 15.61
Total Take-up (ft2) Avg. Deal Size vs. 2020 Headline Rent
Vacancy Rate (%) Average Deal Size (ft2)
Freehold and leasehold 10 Year Average (£ per ft2)
Total Take-up Vacancy Rate Headline Rent
(000 ft2) (%) (£ per ft2)
Worcester remains an attractive business location as the
City’s business community works together in the face of the
pandemic and exposure to footfall becomes a priority.
Demand Supply Rental and Capital Values
Take-up and the average deal size Availability is at an all time low with few The increasing disparity between
outperformed 2019 and vacancy developments likely to be brought to headline and average rents reflects the
rates fell to a record low, showing market over the coming years. Where demand for modern office space close
a surprisingly healthy demand for new products have been brought to to the motorway junctions and business
office space in Worcester, despite the the market, such as at the Porcelain parks. When such space does become
pandemic. One company we spoke to Works, these have proved popular, available, such as at Wildwood Triangle
said that they relocated to Worcester demonstrating the demand for quality in 2020, the rents being paid are
city centre to maintain a “high street” space in Worcester. justifying the quality of the space.
presence at a time when it has been
difficult to get in front of people. Modern office space may be coming Average sales rates have remained
available around Junction 6, however consistent at £145 per sq ft, perhaps
this needs to have consideration to the owing to the lack of brand new high
average deal size of 1,904 sq ft. quality space that can justify an
increase from this.
Outlook
Unlike other cities with a population in excess of 100,000, Worcester has retained a strong community
atmosphere, something which the pandemic has brought out further. By investing in the ageing office
stock, Worcester has an opportunity to attract businesses which want to be part of that community
into the city.
12Wychavon Office
Wychavon
28,685 3.6 2,207 +51 16.43
Total Take-up (ft2) Avg. Deal Size vs. 2020 Headline Rent
Vacancy Rate (%) Average Deal Size (ft2)
Freehold and leasehold 10 Year Average (£ per ft2)
Total Take-up Vacancy Rate Headline Rent
(000 ft2) (%) (£ per ft2)
Wychavon’s potential is huge, having first class
infrastructure and a connected rural community,
however it remains in stiff competition to the home office.
Demand Supply Rental and Capital Values
Wychavon has attributes that have Wychavon has a good balance Rental growth in Wychavon has
moved up occupiers’ list of requirements, between office space within its increased year-on-year since 2015 with
such as space, connectivity and the rural principal towns and rural business headline rents now at £16.43 per sq ft.
ambiance. However, it is in competition centres. These have been impacted This is reflective of the unique well-
with the work from home mindset by the pandemic and a lot of the small presented rural space the area offers.
which still offers all of the above at no centres will benefit once businesses
additional cost. return to the workplace. The average sales rate remains
amongst the highest in the county with
Although this has led to a rise in vacancy Consideration still needs to be given appetite being particularly strong for
rates, we think that the continued towards offering quality office space existing courtyard schemes such as De
promotion of the benefits of being in the around the district’s road network and new Salis Court in Droitwich.
area will mean that occupiers will return Worcestershire Parkway railway station.
to the district in 2021.
Outlook
The district has retained its identity as a well-connected market with major infrastructure points such
as its motorway junctions, the A46 and Worcestershire Parkway Station. An additional draw is its rural
position as occupiers look for space and green working environments following the shift in people’s
perception of where they want to work following the pandemic.
13Office Wyre Forest
Wyre Forest
18,704 1 2,672 +34 11.28
Total Take-up (ft2) Avg. Deal Size vs. 2020 Headline Rent
Vacancy Rate (%) Average Deal Size (ft2)
Freehold and leasehold 10 Year Average (£ per ft2)
Total Take-up Vacancy Rate Headline Rent
(000 ft2) (%) (£ per ft2)
The availability and sale of freehold opportunities
demonstrate demand from this market with the Wyre
Forest’s vacancy rate being pushed to an all-time low.
Demand Supply Rental and Capital Values
As the only submarket to outperform The Wyre Forest area has the lowest As the most affordable submarket within
its 10 year average take-up figures, amount of office stock in the county, the county, this has been a benefit in
demand in the Wyre Forest has led which is primarily attributed to its attracting occupiers during the pandemic
to vacancy rates falling to their small geographical size. However as businesses become conscious of their
lowest level for over a decade, to with vacancy rates hitting a record costs base. With the subsequent low
1.0% (compared to 3.3% in 2019). low, this presents a huge opportunity vacancy rate, this might be good news
for developers to capitalise on for Landlords as net income increases.
The average deal size was amongst the increasing demand.
the highest in the county as Average sales rates remain low in
companies looked to relocate The development of the Stourport comparison to the rest of the county.
from the Black Country. Road in Kidderminster remains This reflects the dated stock of the Wyre
popular with a letting over 5,000 sq Forest’s manufacturing past and presents
ft being agreed at Gemini House. an opportunity for developers to introduce
purpose built stock to the market.
Outlook
The Wyre Forest office market has performed well in the face of the pandemic and the increasing
pressure from occupiers looking to move or grow within the district presents an opportunity for
developers or Landlords to capitalise on this demand.
14Industrial Sub-Markets 2020
Total Take-Up Vacancy Avg. Deal Size
(ft2) Rate (ft2)
Bromsgrove 76,632 2.8% 6,967
Malvern Hills 20,294 3.4% 4,059
Redditch 639,010 6.3% 21,300
Worcester 139,776 3.5% 6,656
Wychavon 131,299 3.9% 5,252
Wyre Forest 124,508 3.1% 6,225
Birmingham
M5
Wyre Forest
M42
Bromsgrove
Redditch
Worcester
Wychavon
Malvern
Hills
London
Cardiff M50
M5
Bristol
15Industrial Bromsgrove
Bromsgrove
76,632 2.8 6,967 9:91 8.13
Total Take-up (ft2) 2020 Headline Rent
Vacancy Rate (%) Average Deal Size (ft2) Freehold : Leasehold (£ per ft2)
Freehold and leasehold
Total Take-up Vacancy Rate Headline Rent
(000 ft2) (%) (£ per ft2)
The supply of freehold industrial space has become
critical as vacancy rates start to fall and freehold
prices reach record highs.
Demand Supply Rental and Capital Values
Bromsgrove remains the most in Availability levels are the lowest in the Bromsgrove marginally increased
demand industrial location for SME county at 8 months, with there being its disparity between headline and
businesses with only one of the 11 no freehold industrial opportunities average rents in 2020, with headline
transactions in 2020 being above the on the market at the beginning of rents pushing over £8 per sq ft for the
10,000 sq ft mark; the letting of over 2021. This pent-up demand means first time. This is a consequence of a
40,000 sq ft at Corbett Business Park. that any freehold industrial unit that number of transactions at Sapphire
comes on the market is snapped up Court, a good quality modern industrial
The split between freehold and quickly. The average period that a new scheme on Bromsgrove Enterprise Park.
leasehold opportunities shifted unit on Saxon Business Park is on the
from 30:70 in 2019 to 9:91 in market is now just under two weeks. Capital values remained high as SME
2020, showing both a continued businesses look to acquire property and
demand and stock shortage. take advantage of preferential buying
conditions, with prices being achieved
in excess of £135 per sq ft last year.
Outlook
There is no better time than now for property owners in Bromsgrove to sell their industrial unit. As the
long-term impacts of the Coronavirus pandemic remain uncertain, it is not clear how long this high
performing sales market will last.
There is still a strong rental market from the established SME business base and quality stock needs to
also be made available to this market, who may not be in the position to buy.
16Malvern Hills Industrial
Malvern Hills
20,294 3.4 4,059 0:100 7.68
Total Take-up (ft2) 2020 Headline Rent
Vacancy Rate (%) Average Deal Size (ft2) Freehold : Leasehold (£ per ft2)
Freehold and leasehold
Total Take-up Vacancy Rate Headline Rent
(000 ft2) (%) (£ per ft2)
As the improvements to the Southern Link Road enters its final
stages, the Malvern Hills does not yet have the commercial
space to cater for this opportunity – the area needs to
address this issue over the next 12 months and beyond.
Demand Supply Rental and Capital Values
The Malvern Hills district traditionally Supply within the Malvern Hills district Headline and average rental levels
has the lowest take-up levels owing actually remains high owing to the St. have remained on a consistent
to its smaller commercial market, with Modwen development at Broomhall upwards trajectory since 2017, with
the total amount of industrial stock Business Park, which falls within the headline rents jumping to over £7.50
being 1,924,338 sq ft, compared to district. If we disregard this scheme, per sq ft.
the second lowest (Bromsgrove) at availability falls from just under 50
3,979,645 sq ft. months to just over 12 months. Capital values have recovered
following a dip the previous year, this is
Take-up fell back below the 10 year The supply of small units remains low, due to the sale of two quality units, also
average as no landmark deals were as shown by the short letting times of on Malvern Business Centre, showing
completed last year, showing the two units of Malvern Business Centre that quality sells and goes quickly.
volatility of a small market. on Enigma Business Park in 2020.
Outlook
With the Malvern Hills having the lowest average deal size, new developments need to come forward
that cater for the SME market as they are running out of places to go and we are aware that some
have chosen to leave the district.
This demand, along with the improved infrastructure to the area presents the biggest opportunity of
any area in the county.
17Industrial Redditch
Redditch
639,010 6.3 21,300 7:93 8.51
Total Take-up (ft2) 2020 Headline Rent
Vacancy Rate (%) Average Deal Size (ft2) Freehold : Leasehold (£ per ft2)
Freehold and leasehold
Total Take-up Vacancy Rate Headline Rent
(000 ft2) (%) (£ per ft2)
Redditch welcomes Amazon this year, adding to the town’s
profile as a leading warehouse & manufacturing centre for
national and multi-national occupiers.
Demand Supply Rental and Capital Values
Take-up in the Redditch industrial As new schemes such as Redditch Headline rental levels have increased
market hit an all time high in 2020, Gateway and Velocity 42 are reaching to record levels, showing the positive
owing to the letting of over 350,000 sq completion, Redditch has good supply effect that new schemes within the
ft to Amazon at Redditch Gateway. levels within the mid to large unit SME market have. Average rents are
There was also activity in the sub 10,000 market. There are also examples of relatively stable, however they may
sq ft category with over two thirds of schemes which have supplied the SME start to decline if the deteriorating stock
transactions being in this market last market, such as Crescent Trade Park, is not brought up to standard.
year. which has proved popular.
Capital values remain strong with an
Critically, some freehold opportunities Overall supply has fallen, however average sales rate for 2020 just passing
did come to the market last year, this is a result of the large transactions £80 per sq ft. These values are driven
although the supply of these was still highlighted above. by the sale of a number of business
well below demand. units, which offer occupiers a hybrid
warehouse / office property, a product
which has become popular over the
past 12 months throughout the county.
Outlook
Redditch is doing everything right by bringing forward developments across the entire size spectrum,
they simply cannot keep up with the demand from businesses to be in the area. As well as building
new stock, there is the opportunity to improve the obsolete accommodation which will yield good
results for Landlord and property owners.
18Worcester Industrial
Worcester
139,776 3.5 6,656 13:87 7.87
Total Take-up (ft2) 2020 Headline Rent
Vacancy Rate (%) Average Deal Size (ft2) Freehold : Leasehold (£ per ft2)
Freehold and leasehold
Total Take-up Vacancy Rate Headline Rent
(000 ft2) (%) (£ per ft2)
Worcester’s industrial market shifted to offer the most
diverse unit and tenure mix in the county, with a shift in
average deal size and freehold to leasehold split.
Demand Supply Rental and Capital Values
For the first time since 2017 take-up Worcester had the highest ratio of The creation of a popular enterprise
slipped below the 10 year average, freehold to leasehold transactions in centre on Blackpole Trading Estate
however the number of transactions 2020 out of any district. Of these freehold led to an increase in headline rents,
were exactly the same as in 2019. This deals, two notable transactions were demonstrating the demand for quality
is a consequence of a greater number in the city centre at Carden Street and accommodation. More schemes like
of transactions in the sub 10,000 sq ft Orchard Street; showing that supply this need to be encouraged.
category. This is not a negative statistic should not just be limited to the business
as it shows support for SME businesses parks around the motorway. Capital values have improved
which are vital to Worcester’s marginally owing to an increase in
economy. This is an encouraging statistic given the transactions. There is still a lack of
high institutional estate ownership quality freehold transactions which
in Worcester. could push that sales rate further.
Outlook
Whilst Worcester does the mid box market well, particularly around Shire Business Park, it was good to
see a greater number of sub 10,000 sq ft transactions, particularly close to the city centre. As pressure
increases on the city’s motorway junctions, existing central sites need to be looked at, for example
those to the east of the river, around Shrub Hill Station and the Diglis Basin.
19Industrial Wychavon
Wychavon
131,299 3.9 5,252 5:95 9.94
Total Take-up (ft2) 2020 Headline Rent
Vacancy Rate (%) Average Deal Size (ft2) Freehold : Leasehold (£ per ft2)
Freehold and leasehold
Total Take-up Vacancy Rate Headline Rent
(000 ft2) (%) (£ per ft2)
New developments can’t keep up with demand as
Wychavon remains popular, 2020’s fall in take-up is
a minor blip as more space is due to be delivered at
Worcester Six, Hartlebury Trading Estate and Vale Park.
Demand Supply Rental and Capital Values
Take-up in 2020 fell back/was limited Wychavon has a good supply pipeline Wychavon has achieved the highest
as there were fewer transactions at across the entire district. Whilst the headline rents in the county yet again
landmark schemes such as Worcester Six. previously mentioned Worcester Six owing to successful small unit schemes
There was however a consistent stream lies adjacent to the M5, developments across the district. Aside from distorting
of demand with there being an identical across the district such as Vale Park in the figures, this shows that county-wide
number of transactions in the sub 10,000 Evesham and the latter development more of these types of units area required
sq ft market compared to last year. phases at Hartlebury Trading Estate, as demand is still high.
offer premises in all locations.
Wychavon has the development either Average rental values have pushed
completed or coming forward to cater With the institutional developments past £6.00 per sq ft for the first time,
for this demand in 2021, such as Withy listed above catering well for again demonstrating the popularity of
Wells Business Park near Junction 6 of the leasehold market, freehold the district.
the M5 motorway. There is also much opportunities need to be made
needed freehold space being made available, with Wychavon having Capital values have improved slightly
available at the Salwarpe Business Park the second lowest freehold as the availability of freehold stock
in Droitwich. remains limited.
Outlook
Wychavon is trailblazing the way by offering new accommodation for the logistics market as well as
smaller units for SME market. The data does not paint the full picture as Wychavon’s pipeline looks
strong for the years to come across all corners of the district.
20Wyre Forest Industrial
Wyre Forest
124,508 3.1 6,225 12:88 6.13
Total Take-up (ft2) 2020 Headline Rent
Vacancy Rate (%) Average Deal Size (ft2) Freehold : Leasehold (£ per ft2)
Freehold and leasehold
Total Take-up Vacancy Rate Headline Rent
(000 ft2) (%) (£ per ft2)
The highest number of transactions since 2017,
record hitting rents and falling vacancy rates show
the buoyancy of the Wyre Forest industrial market.
Demand Supply Rental and Capital Values
Take-up in 2020 was the lowest since The supply of quality freehold Headline rents have passed £6 per sq ft
2014, however transaction volumes accommodation was evident at Bewdley with average rents passing £5 per sq ft
remain high at 20, higher than the 10 Business Park and similar industrial estates, for the first time. This is reflective of the
year average of 19. This is due to a leading to a good split between freehold demand for small to medium units and
lack of large lettings, however there and leasehold transactions. Of the stock the modern developments that are being
were a good amount of quality sub that is available, there is still over 25% made available in the Wyre Forest.
10,000 sq ft lettings. available to the freehold market, which
is high in comparison to other districts. Average sale rates are still low in
This shows healthy demand from the comparison to the remainder of the
district’s most populous business size Despite being a small geographical area, county, which relates to the large
bracket and is reflective of the low supply is spread across the business parks, units that remain from Kidderminster’s
vacancy rate, the second lowest in Kidderminster’s commercial areas and manufacturing past.
the county after nearby Bromsgrove. rural industrial estates.
Outlook
The Wyre Forest industrial market was one of the star performers of 2020, despite having a lower
take-up than 2019, although this was distorted by the sale of 130,000 sq ft on Zortech Avenue.
This progress will continue in to 2021 as the area evolves, for example at Haynes Point where a
former carpet warehouse facility is being transformed to offer modern accommodation.
21Why Choose GJS Dillon?
Asset Management
Under the direction of Adam Jones, a Chartered Surveyor and
RICS Registered Valuer with over 15 years of experience, the Asset Why choose us
Management Team works closely with Landlords and Tenants to
Maximising asset values
ensure all parties are being provided with a proactive and tailored
management service whilst also maximising investment returns. Tailored and
innovative approach
Working with a range of property owners across Worcestershire and Best practice accounting
the West Midlands, the Asset Management Team strives to bring a Full range of professional
professional and forward-thinking approach to their clients. services in-house
Local expertise
Asset Management Commercial Property Specialists
Fully regulated by RICS
We will maximise the value of your Our Asset Management Team,
assets using an innovative and combined with our Agency Team, Customer service
bespoke management approach. Professional Services Team and
Whether office, industrial, retail/retail Building Surveying Team are able to
parks or leisure premises, we will seek offer a complete range of services
to improve occupational efficiencies to Landlords, Investment Managers, Ethos
and reduce operating costs. Pension Funds and Property Companies. The underlying ethos at GJS Dillon
is to provide invaluable local
Tenant Management Across the Region knowledge and property expertise.
We will advise on your responsibilities We have three strategically placed Our outstanding professional and
as an effective Landlord by offices – a Head Office in Droitwich personal service is based on our
managing lease negotiations, rent with satellite offices in Worcester extensive knowledge of the regional
reviews and sourcing new tenants. and Bromsgrove. property market.
We also manage your typical
accounts’ functions.
Accounting and Audit
We have a bespoke web-based
software package to manage
the collection of rent, insurance
and service charge payments.
This is administered in accordance
with RICS best practice, providing
detailed reporting and audit facilities.
Fully Regulated
The firm is fully regulated by the Royal
Institution of Chartered Surveyors
and our Directors are fully qualified
RICS members, undergoing regular
training in line with RICS Regulations.
22Types of work undertaken What our clients say
Day to Day Property Management “The private property market within the Worcestershire
We have a dedicated, professional and fast area offers extensive opportunities for investors like myself.
acting team ready to deal with any issues. Regular GJS Dillon’s Property Asset Management services have
and detailed property inspections are undertaken helped me to ensure that I gain maximum value from my
to ensure these are kept to a minimum. investments and I would not hesitate to recommend them.”
Frankie Tsang, Lyppard Grange Properties Ltd
Financial
Our range of services include: rent and service
charge invoicing, arrears collection and “An invaluable resource when it
management, supplier payments, service charge
budgeting and reconciliation.
comes to property investment.”
Landlord and Tenant
A full range of advice is provided on rent reviews, “With their outstanding local knowledge and unrivalled
surrenders and lease renewals, lease term research data of the property market, GJS Dillon and
obligations, letting strategies, tenant vetting, their Asset Management team have proved an invaluable
and dispute resolution. resource when it comes to property investment.”
Gary Taylor, Altitude Real Estate Ltd
Compliance
Statutory regulation compliance, health and
safety and insurance is paramount for any owner
or occupier. We are able to bring together our “An exceptional service both to
specialist network to provide comprehensive advice. us as landlords but also to the
numerous tenants on our sites”
Project and Maintenance Works
We are able to budget, tender, benchmark and
supervise all aspects of project or maintenance
works. Whether it be ongoing, planned, preventive, “The team at GJS Dillon has managed Wildwood
ad-hoc or emergency works, we work with our Triangle Business Park on behalf of Maximus for several
in-house building surveying team and a number of years. They coordinate not only the management of the
approved contractors to provide the best value buildings themselves but also the tenants’ service charge
solution for our clients. management and they have done an exceptional job.
Strategy “GJS Dillon took over from a well known national surveying
A short, medium and long term asset practice which really wasn’t interested in managing an
management strategy is developed with the asset within Worcestershire. GJS Dillon have provided an
Client from the outset. This strategy is constantly exceptional service both to us as Landlords but also to the
evolving as economic, property and client numerous tenants who are situated on our sites.”
influences are forever changing. Jon Hickton, Maximus
Get in touch with our teams, call us 01905 676169
Sales, Lettings & Acquisitions Asset Management
Call Adam and the
Professional Services & Valuations Asset Management Team
01905 676169
Building Surveying Services
23Celebrating 10 years of
commercial property expertise
www.GJSDillon.co.uk | info@GJSDillon.co.uk | Droitwich (HQ) 01905 676169 | Bromsgrove 01527 872525 | Worcester 01905 28684
Introducing our new residential
surveys and valuations department
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