The Malvern Hills area is becoming increasingly popular with tech companies and those seeking a quality office environment, according to Worcestershire commercial property consultancy GJS Dillon.
Take-up of the office market looks to soar in 2022 as space which is under offer completes, putting pressure on the need for modern quality office space. The supply pipeline is set to grow with the completion of Phase 5 of Malvern Science Park. This will provide 16,000 sq ft of floor space available to new companies or existing tenants seeking to expand their premises. GJS Dillon has also been instructed on the sale/letting of brand new office space at Enigma Commercial Centre.
Malvern Hills has the highest vacancy rate for office space in Worcestershire, of 5.5%. Average market rents for office space have decreased slightly for the third consecutive year but headline rents have increased. This shows the disparity between dated stock and Grade A stock.
Meanwhile, take-up of industrial property in 2021 was double the ten year average at over 80,000 sq ft and availability is the second lowest in the county at 1.4%. Supply within the Malvern Hills district has increased dramatically as Phase 1 of Broomhall Business Park nears completion and Phase 2 is about to get underway.
Whilst Broomhall offers warehouse space over 10,000 sq ft, consideration must still be given to the SME businesses which are desperate for quality manufacturing / warehouse units in the sub 10,000 sq ft category. Rental levels are increasing with headline rents getting close to £7.50 per sq ft for the first time.
‘This area traditionally has low take-up levels owing to its smaller commercial market, which can partly be explained by its physical constraints with the Malvern Hills forming a natural boundary and the River Severn being in between the area and the M5 motorway ‘ says Andrew Lewis, Commercial Agency Director at GJS Dillon, author of GJS Dillon’s Worcestershire Commercial Property Market Report 2022.
However these historic connectivity issues are set to be improved with the Worcester Southern Link Road enhancement, which will attract businesses to the area.
‘The Malvern Hills office market has a lot to shout about, offering a fantastic work life environment but more quality space is needed’ says Mr Lewis ‘As far as industrial space is concerned, sites need to be identified where research and development and manufacturing hubs can be developed’ continues Mr Lewis’ These can be used to attract the inward investment of tech occupiers – mirroring what has been done at the Malvern Hills Science Park, but for the industrial sector.’
