Secondary and tertiary industrial property is becoming more desirable as the West Midlands' grade-A stock rapidly diminishes, according to research from Cushman & Wakefield. In 2013, there were three transactions of more than 100,000 sq ft of what Cushman & Wakefield classes as grade-C space, totalling 830,000 sq ft. In 2014,16 transactions totalled 3,65m sq ft of space. In contrast the amount of grade-B space taken fell - in 2014, 2.14m sq ft of space was taken compared with 2.62m sq ft in 2013. Lack of grade-A stock isn't the only reason for the leap in grade-C lettings. Cushman & Wakefield is also attributing the rise to a desire among occupiers for shorter leases. "Secondary is getting more attractive to certain occupiers such as third-party logistics providers that have perhaps a fixed-term three-year contract with a customer," says Colin Lawrence-Waterhouse, associate in Cushman & Wakefield's Birmingham national logistics and industrial agency. "Occupiers have to choose between bottom-end stock with a short lease or top-end stock on a long lease."
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