Despite the fact that the UK economy grew by just 0.3 per cent in the first quarter, growing demand for modern warehouse accommodation has led to news of the first large-scale speculative development for five years.
Midlands’ based developer, IM Properties, has demonstrated confidence in the region’s economic prospects by announcing that it will begin construction of two logistics units totalling 334,500 sq ft in July.
The development will take place at IM Properties’ prime location Birch Coppice Business Park in North Warwickshire, which is already home to tenants including Ocado and Volkswagon Group.
There has been no speculative development of warehouse units over 100,000 sq ft since the beginning of the recession in 2008 and IM Properties is pleased to be leading the way.
Development Director Kevin Ashfield said; “There is a severe shortage of good quality stock both regionally and nationwide and against this backdrop of decreasing availability we are seeing increasing occupier demand.
“Occupiers need certainty over deliverability and few companies can wait for a design and build solution.
“We believe the time is right for speculative development.”
Mr Ashfield added that IM Property’s strong financial situation, and their belief in Birch Coppice, gave the company the confidence to seize the opportunity.
The new warehouse units are scheduled to be completed by January 2014.
