Birmingham, United Kingdom – 09/01/2024 – Commercial agents at Harris Lamb, a leading UK-based commercial property agent, have expressed a strong and optimistic outlook for the Midlands industrial and logistics sector in 2024. This positive forecast is underpinned by an anticipated economic stability, which is expected to inject renewed confidence into the marketplace. Notably, the construction of new schemes within the region has already begun, signaling early indications of growth and revitalization.
Neil Slade, Director at Harris Lamb, reflects on the past year: “2023 posed various challenges for the industrial market, particularly in light of high inflation, rising interest rates, and the wider socio-economic impacts of global events. Despite these hurdles, the market is witnessing a significant turnaround as we approach the end of the year. The current inflation rate has dipped below 4%, and with the Bank of England’s decision to maintain interest rates at 5.25%, we’re seeing a resurgence of confidence in the market.”
Slade further explains that the industrial sector’s enduring supply-demand imbalance, driven by sustained occupier demand and limited supply, is set to improve as market conditions stabilize. The expected increase in consumer spending in 2024, particularly within the e-commerce sector, is likely to spur further activity in the logistics market. This has already been evidenced by several distribution warehouses in the region going under offer in the final quarter of 2023.
Harris Lamb also highlights the commitment of developers to speculative development, a key driver in addressing the supply shortage. Notable developments include Schroders at Hartlebury Trading Estate and Vengrove at Erdington Industrial Park, with additional projects to be announced in the new year. Furthermore, developer-led land deals, such as Chancerygate’s recent acquisition of 12 acres in Erdington, demonstrate a tangible confidence in the market’s future.
“While some caution is expected as we transition into 2024, the resilience of the economy to recent challenges suggests a conservative yet continuous economic growth,” Slade adds. “We are quietly confident that the industrial sector will experience an upturn in both sentiment and activity as the new year progresses.”
Harris Lamb remains committed to providing insightful market analysis and expert guidance in the commercial property sector, contributing to the ongoing growth and success of the Midlands industrial market.
About Harris Lamb
Harris Lamb is a well-established commercial property consultancy with a deep understanding of the Midlands industrial market. With a focus on providing high-quality services, the firm offers expert advice and support in property sales, acquisitions, and development.