Property is a huge market across all areas of the UK. With so many different areas of the industry, there is ample opportunity for people to get involved and sectors like industrial property continue to boom in the UK. There is constant expansion and growth, despite the uncertainty of Brexit. This area of real estate is one of the main asset classes of commercial property and can be defined as a property used for the actual manufacturing of something, such as a factory or plant. This is usually zoned for light, medium or heavy industry and includes things such as warehouses, garages and distribution centres.
According to Savills, during the past year it seems that demand for industrial space in the Midlands area of the UK is strong. With the Commercial Express main office based in the West Midlands, it is interesting to discuss why this may be. Despite economic uncertainty across all sectors in the current climate, industrial property could arguably be one of the more robust areas of business. If the demand is outweighing the supply, then this is a good sign and demonstrates staying power.
Across the Midlands area, the preferred choice for new industrial developments is large sheds. Alongside this, it’s been stated that more small and medium-sized units are needed. This is due to the increase in ecommerce and last mile delivery services which ensure goods get to their destination as quickly as possible. In order for an industrial property to be useful and successful, it can be suggested that there should be labour, good location and an available power supply.
Savills also discuss how industrial rents are expected to grow at a rate of circa 2.5 per cent per annum nationally. In some areas of the Midlands however, such as the M42 corridor, this stat is thought to be much higher. Also stated by Savills is that the take-up of industrial and logistics space by online retailers has grown by 731% since 2008. This could be because occupiers continue to build their supply chains to keep up with consumer demand.
Industrial property, is therefore, an interesting sector with many areas that can be explored. Seeing how this part of real estate progresses over the coming years is something that will be noted by many people. When it comes to industrial property insurance, it can be challenging to find a policy that suits an owner’s needs.
At Commercial Express, our industrial property owner’s policy is designed to provide buildings, landlord’s contents, loss of rent protection and property owner’s liability for properties tenanted by high street trades. There are many features of this policy, through the Lloyd’s scheme. Many brokers view us as fitting choice when looking for cover for their clients. Visit our website for more information.
This is a marketing article by Commercial Express and does not offer any advice.