West Midlands

19 July 2017, by Ranjit Gill

With take-up in the West Midlands already eclipsing the annual long term average it is clear there is occupier demand for the right product in the right location



M6DC Cannock, developed by Graftongate

▲ M6DC Cannock, developed by Graftongate


■ Developers have responded to the previous chronic lack of stock in the West Midlands and available space has increased by 16% from the end of 2016. There is currently 3.5m sq ft available, of which 58% is classified as Grade A.

■ There are seven units speculatively available in the region totalling 1.5m sq ft and six of these reached completion in 2017. The largest speculative unit available is M6DC in Cannock which comprises 372,000 sq ft. There has also been strong development activity in Coventry where three new units have achieved practical completion in 2017 totalling 718,546 sq ft.


Supply by grade

Figure 9

Source: Savills Research


■ There has been strong levels of take-up in H1 2017 with 4m sq ft recorded which was 58% above H1 2016 and a 95% increase on the long term average. This was the strongest H1 take-up performance on record.

■ Despite the strong levels of speculative development there was still strong demand for build-to-suit space with 1.7m sq ft being transacted which equated to 42% of total take-up. Given the fact that there are only three units available over 200,000 sq ft, build-to-suit has been the only viable option for occupiers who are seeking large units.

■ The strong demand for speculative units in the region was evident in H1 2017 with a number of speculatively developed units being let. Two of these units were located in Rugby with Roxhill and Segro’s Rugby Gateway scheme anticipated to be fully let in the upcoming quarter.

■ The automotive sector has been the most active business sector in the region accounting for 46% of take-up. Notable occupiers active from this business sector include Jaguar Land Rover, Michelin and Polytec.



Figure 10

Source: Savills Research

Development Pipeline

■ There is currently 741,308 sq ft under construction in the region across six schemes, the largest being Conneqt Alpha in Cannock where Opus is speculatively developing 153,635 sq ft. All of these units are between 100,000- 200,000 sq ft, meaning the shortage of new units over 200,000 sq ft will continue in the medium term.


Development pipeline by size

Figure 11

Source: Savills Research


Key stats

Table 3



Key Contacts

Ranjit Gill

Ranjit Gill



+44 (0) 121 634 8402


Kevin Mofid

Kevin Mofid

Commercial Research

Margaret Street


Subscribe to Savills research


Would you like to be notified via email about new research?