Piecing together the prospects for the current year in the region brings a sense of having moved from a tough, hard to please market, to a more relaxed and hopeful mood.
At the heart of this view is the stronger performance of the auto industry which brought increased UK and export sales as a range of new models made their mark and confidence grew. This has widened into the components business and has brought increased lettings of industrial space, mainly to cope with the just-in-time supply system. In turn the rise in demand is exposing the shortage of prime space and large sheds, which gives the further consideration of a new climate for development.
In city centres the prospects for new development is whetting appetites among agents and in the case of
Birmingham is exemplified by prospects for the next phase of Snowhill and the £450 million Paradise Circus scheme, a real game change for the city centre.
Other projects setting the tone for the region are St Modwen at Longbridge, St Modwen and Goold in
Walsall and Compendium in Derby. In each case the developments will contribute substantially to the improvement of the areas.
One favourable fact that accompanies the flush of optimism is that transport is being improved, as shown by the rebuilding of New Street Station, Birmingham and Northampton’s ‘Castle Station’ as well as £125 million on expanding the metro system. On the horizon for the region is the HS2 railway line.