Member Article

Manufacturers trigger strong growth in industrial sector

The industrial sector has seen strong growth this year, with more firms requiring larger premises as a result of recent expansion.

Manufacturers in particular have performed well and many companies in this sector have been taking up occupancy in industrial premises based in strategically well-placed locations around the region. Activity in this sector is helping to maintain economic growth and shows little sign of abating.

However, there are challenges for the market to overcome. There is a shortfall of prime stock with many of the larger properties over 10,000 sq ft becoming obsolete. This problem will become even more acute if companies continue to trade up to bigger premises – and this trend is likely to continue as long as the economy remains robust.

For prime units the market is seeing a change, with rents hardening and fewer incentives being offered. Meanwhile, capital values remain steady due to lack of supply.

By Richard Rafique, associate director at chartered surveying firm Bradley Hall

This was posted in Bdaily's Members' News section by Bradley Hall .