The authors also forecast a strong pipeline of demand in all size ranges within the M40 area, with around 3m sq ft of active demand along its length – equivalent to almost three years of average take-up.
Despite these factors, the report finds that industrial land values along the M40 stand at a notable discount to those of more established markets, offering investors and developers a competitively priced alternative to traditional core locations.
The report identifies 3 sectors of the corridor Upper, Middle and Lower. It highlights opportunities in the various locations area around Warwick, Leamington Spa where continued demand is expected from the automotive sector; near Banbury and Bicester, where additional land could be made available as a result of changes to planning policy; and between Oxford and High Wycombe, where there is scope to build smaller units to serve the urban logistics market.
Steve Williams, National Head of the Industrial and Logistics Agency team at Lambert Smith Hampton, said: “The market has begun to consider the M40 corridor however we believe that the corridor continues to offer a competitively priced alternative with genuine growth prospects.
“As values in core locations continue to escalate, the M40 represents an untapped area of opportunity that presents a clear strategic proposition for forward-thinking investors to consider speculative development and investment.”
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