Insider Media Limited

The Midlands has the lowest levels of industrial property supply in the UK, according to BNP Paribas Real Estate. By the end of June 2010, there was just 2.6 years of industrial stock remaining in the region, which should “prompt developers and investors to start considering recommencing speculative development”, said the company.

The region was the most popular industrial spot for the last year, however the last quarter saw activity in the Midlands surpassed by regions including London and the South East, the North West and Yorkshire and Humberside.

Ranjit Gill, senior director of Birmingham industrial agency at BNP Paribas Real Estate, said: “Supply in certain size ranges is becoming a problem for the Midlands and it is having a direct effect on take-up levels as the area cannot provide a wide scope of products to meet occupier requirements.

“The current provision is skewed towards second hand and smaller units meaning that the larger shed occupiers requiring new facilities are looking elsewhere to satisfy immediate requirements and the regions that have suffered from oversupply are now being considered again.”

Gill added that BNP Paribas’ forecast suggests that the next two quarters “could deliver high levels of take-up across the UK as a number of large requirements are satisfied”. He said that the Midlands remains the “UK’s premier distribution hub”, but added that the region needed to ensure that occupiers “are not forced to look elsewhere due to a lack of suitable product”.