The second phase of work has started at the io Centre in the Park Farm area of Redditch.
Developers hope it will help attract new businesses to the area.
The project involves three new warehousing units with a total of 64,970 sq ft of industrial space in a strategic location to the south of Birmingham, close to the M42 motorway.
The Church Commissioners for England, owners of phase one of the io Centre, have appointed Griffiths Eccles to develop phase two.
Property advisers DTZ and John Truslove have been named as joint agents for the scheme, which is due for completion in February 2006.
The units, which are available on a leasehold basis, will include office space on the first floor with reception and staff facilities, large service yards with external lighting and onsite car parking.
The io Centre provides good access to Junctions 2 and 3 of the M42, which are only seven and eight miles away respectively, and is close to Redditch town centre.
Rachel Underwood, of the economic development unit at Redditch Council, said: "The second phase development of the io Centre will fill a gap in the Redditch market for brand new industrial units in the 20,000 sq ft size range.
" Available for occupancy on completion, the scheme will be suitable for local companies looking to expand but will also attract new businesses into the area."
John Sambrooks of property agency DTZ, added: "Redditch is ideally located for a range of businesses with warehousing requirements due to excellent road transport links and a high quality workforce.
"The town's industrial areas, including the io Centre site, have developed within a well-planned road system due to Redditch's former status as a 'New Town'.
"This means there is a low level of congestion when compared to other locations in the West Midlands."