Freehold units and a great location - that is the winning combination that will make phase two of an already successful industrial development stand out for potential occupiers.
At least that is the hope for developer Enodis, which has unveiled its plans for the second phase of its Banner Park development, with three high-quality units coming up for sale or for rent.
The developer is speculatively building a total of 33,330 sq ft of production space at Banner Park, close to the A45 in Coventry, where it has already successfully disposed of four units in phase one.
According to Cris Maxim, associate director at the Birmingham office of joint agent LSH, the availability of freehold premises will mark out the new development for special interest from potential occupiers who are fed up with renting.
Mr Maxim says: "There is a real dearth of new freehold industrial units available across the West Midlands at present, as it is rare for developers to offer new-build accommodation for sale and we are already getting positive interest from a number of parties."
Three units of 14,562 sq ft, 13,580 sq ft and 5,188 sq ft, with planning permission for B1 or B2 usage, are under construction and two of the units can be combined for requirements of 20,000 sq ft.
Completion is scheduled for September this year and a further single unit of 36,587 sq ft with planning permission for B1, B2 or B8, will be available for design and build, specific to occupiers requirements.
Prices for freehold will be based on #65 per sq ft, while rentals will be based on #5.50 per sq ft, according to the agents.
Banner Park is next to Massey Ferguson's plant, close to the A45 which means occupiers have easy access to the entire Midlands motorway network of M40, M42, M6, M69, M45 and M1.
According to John Sambrooks, senior surveyor at Chesterton's Birmingham office, the location of Banner Park played a key role in selling the first phase of the development and will be equally important for phase two.
He says: "Being sited near to one of the Midlands' major trunk roads means that occupiers at Banner Park have their pick of motorways to transport their goods and the ability to avoid any congestion.
"Judging by our experience of phase one, we anticipate receiving positive interest in the new units from suppliers to the automotive industry."
The continued popularity of freehold units is borne out by the joint agents for another industrial site, Catesby Park at Kings Norton, Birmingham.
They cite two deals where companies have acquired new premises.
Thomas Walker, manufacturer of buckles and fasteners, has bought a 20,000 sq ft speculatively developed production and warehouse building for roughly #70 per sq ft.
And French-owned Railtech UK, which supplies materials for the repair and maintenance of rail track, has purchased a 15,000 sq ft building based on a similar sale figure.
Helen Kendrick, of Fuller Peiser, joint agents with King Sturge for The Catesby Property Group , says a third freehold building measuring 10,000 sq ft is under offer and they are talking with another prospective buyer who is interested in 12,000 sq ft on phase two.
"There is an increasing demand for new freehold buildings in the 10,000 sq ft to 20,000 sq ft range, particularly in areas with good access to the motorway and in close proximity to central Birmingham," she tells Business Property Review.
"Catesby Park is proving very attractive to potential owner-occupiers because well-designed space is available whereas there is a shortage of new freehold space immediately available on many other similar developments in the region.
"Buying instead of leasing property in the current climate is proving more popular because interest rates are currently low and are expected to remain so for the foreseeable future. When this is compared with the cost of renting, it is proving to be a much more attractive opportunity."
Fuller Peiser reports similar freehold demand at St Modwen's Coombs Wood Business Park, Halesowen, where the developer has just started construction of a new 10,000 sq ft office building for for Accessible Hire & Refrigeration, and a 65,000 sq ft industrial warehouse unit for Mapei UK.