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.