The recovery in the commercial property sector, reported towards the latter part of last year, continues to gather momentum as the number of transactions completed, both with regard to the letting and sale of industrial and commercial premises, continues.

For the first time for several years 27 starter units on Hoo Farm are fully let, and for many years the state of the industrial market could be measured by the occupancy rate of these units. From small manufacturing storage and service industries, the range of types of occupancy of these units has changed over the years.

In the 1980’s when they were first built virtually all were let to small manufacturers, whereas now the sector has widened and includes service industries, and those also purely involved in storage and distribution.

Apart from these units, industrial properties being offered for sale on Hoo Farm are receiving more enquiries and viewings, and it is anticipated that the sale of such properties will continue to rise as the year progresses. There is also a change in that companies who have managed to consolidate and grow during the recession in units they rent, are now looking forward to purchasing their own properties, realising that in the long term these should prove to be a good investment. Either for the business, or in some cases where purchased through a pension fund, a tax efficient way of providing for their future.

It is also interesting to note that companies who are established in the area, and who have purchased allied companies from other parts of the country are moving these new businesses into Wyre Forest. Being centrally situated in the country, the area is a good location and with transport costs being high enables these companies to access all parts of the UK. There may even be some thought that as the Midlands grows and HS2 becomes reality, then the Midlands will see a higher employment and growth similar to that being experienced in South East England at the moment.

It is undoubtedly economic growth and lower unemployment which helps fuel property prices, and already we are seeing investors in residential rented property seeing opportunities not only for income, but long term capital growth. The amount of new house building now taking place within the district will help satisfy demand, but it has always been in the past the case that values of older property stock eventually catch up with prices being achieved on new properties.

The demand for small shop units in Kidderminster is still evident, again a good sign but as yet there is no real evidence that this has extended into the town centre area, where higher overheads are too much for small new businesses which are trying to establish themselves. Unfortunately the rate of unoccupancy in the town centre sees not real improvement, but it is hoped that the eventual redevelopment of the Bull Ring area will stimulate more enquiry and retailers will realise that Kidderminster is a growing economic centre.