Voice of the Region: West Midlands – Politics of logistics

Take up of logistics space in the West Midlands is at almost twice the five-year average but uncertainty created by Brexit, Covid and a global shipping crisis are increasingly forcing occupiers to ask for short term leases thus presenting difficult decisions for landlords, according to Darby Keye director Chris Keye.

Darby Keye is a niche industrial specialist which has nevertheless risen to second in the Radius On Demand Industrial Rankings for the West Midlands region after transacting 605,174 sq ft of space so far this year. Only JLL has disposed of more space in the West Midlands, where geography makes it a competitive marketplace for the logistics sector.

Keye says pent up demand, exacerbated by a shortage of available space, means that landlords are frequently able to hang out for long term leases, but some units are being taken for as little as three months as occupiers look for short term solutions to ride out the current supply chain chaos. He believes the industry needs to work more closely with occupiers to deliver space best suited for their future needs.