Well, the sun continues to shine, which is obviously great news but does it continue to shine for those of us within the Stourbridge and Black Country commercial property market?

The press would undoubtedly have us believe so. After all, London and the South East reports double digit growth across all sectors and with the UK economic recovery firmly on track, we would expect to see the ripple of recovery outwards, beyond the M25 to the Midlands and the North.

For the UK economy to make up the ground lost over the last few years of recession, it is vital that growth spreads out from London and the Home Counties and into the regions. Key towns and cities which have healthy and robust local economies such as Stourbridge, Dudley, Halesowen and Brierley Hill are well placed to support growth and provide opportunities to expand.

For us in the Black Country, the uplift in demand for retail high street property remains, and the early signs are that rental and purchase price levels are showing an upward trend. ‘For sale ‘stock is diminishing as properties sell, as funds from banks and other lending institutions become easier to obtain. We have certainly seen enquiry levels increase and look forward to speaking to potential Vendors should they be considering placing their commercial property on the market.

To give an indication of the buoyancy in the market we recently let a retail shop in Chawn Park Drive, Pedmore within two days of coming on the market with three people wanting to let the unit. We sold a property in Bull Street, Brierley Hill, a large industrial unit, and had three people bidding for the premises.

With occupier demand for commercial property across all sectors growing for five consecutive quarters we would expect rental and purchase prices to give way to the pressure, and continue the early signs of an upward momentum.

At the time of my last market review, the office sector along with storage and warehousing had not shown an early Spring uplift. However I am pleased to report that along with (hopefully!) the temperatures, signs are now emerging of an increase in demand for such business units with enquiries for smaller offices and warehousing showing a marked upturn. According to reports, perceptions of economic uncertainty are at a three-and-a-half year low meaning that the business community is more likely to be prepared to invest in commercial property or expand into larger offices or take up larger storage and warehousing space.

Now is a great time for prospective ‘entrepreneurs’ and business owners to snap up commercial property in the Black Country, which continue to offer an excellent yield on investment. There is an increasing feeling of ’pent up demand’ with Investors, existing and potential business owners weighing up the best time to ‘jump’ into the market. As with the residential property market , when demand is high, prices rise. This is definitely the way the Black Country commercial market is moving.

So, our advice is ‘get in while the going is good’!

Ian Appleby Lex Allan Commercial Surveyor Stourbridge