How did Warwickshire’s commercial market fare in 2024, and what will 2025 have in store?

Against a somewhat challenging economic and political climate, we catch up with Jon Blood of Wareing & Company to discuss the how the commercial property market fared in Warwickshire in 2024, his predictions for 2025 and most importantly, what belongs in a Christmas dinner…

 

How did you find the last year?

As we wrap up 2024, it’s fair to say that Warwickshire’s commercial property market has been a lot busier than in 2023. We didn’t kick off the year with huge amounts of optimism, though. The interest rate hikes from 2023 had left many investors feeling cautious, and with a General Election looming, a lot of people were waiting to see how things panned out.

But the election was called earlier than expected, and by summer, the market really started to pick up speed. Retail, in particular, came alive, with many deals being completed in the latter half of the year.

 

What were the key economic challenges?

The year wasn’t without its hurdles. Early on, the impact of those 2023 interest rate hikes still lingered, and investor confidence was relatively low.

Interest rates eventually stabilised, which helped, but the economic backdrop still had its tricky moments. The government’s Budget could have been better for smaller businesses with the rise in National Insurance Contributions impacting their spending, but its overall commitment to building is a positive sign.

 

And what about sector-specific challenges?

Different sectors had their own issues to navigate outside of the overall economic outlook. In retail, there was a bit of a slow start before rents finally rebased after the pandemic, which paved the way for the sector’s resurgence later in the year.

The industrial market had a steady year. Warwickshire’s excellent location and transport links kept things ticking along nicely, even if it didn’t see the same surge as retail.

The office market was less active. With hybrid working now firmly the norm, landlords and businesses were understandably cautious about investing in office space. ESG (environmental, social, and governance) considerations also played a big role, making it clear that the office sector is still figuring out its place in a post-pandemic world.

 

What positives did you take from this year?

Plenty, actually! Retail had a fantastic comeback in the second half of the year. Seeing brands like Jo Malone London and Gail’s Bakery choose to set up shops on Parade and Regent Street respectively in Leamington Spa was a real boost for the area. It’s always great to see big names putting their confidence in the region.

The industrial sector also had its wins. Bracco, a global medical firm, took space at Titan Business Centre in Warwick, showing how businesses are still drawn to Warwickshire’s fantastic connectivity.

Even the office market, with all its uncertainty, delivered some exciting moments. One standout was letting around 20,000 sq ft at Imperial Court in Leamington to Lighthouse Games. It’s one of the town’s most prominent office spaces, so seeing a company of their calibre move in was a real highlight.

 

What are your expectations for 2025?

Looking ahead, there’s a lot to feel optimistic about. Flexible office spaces are likely to become even more popular, with companies leaning into the ‘hub’ model — places where staff can pop in and out as needed. Flexibility is king these days, and businesses are happy to pay a little extra for high-quality spaces that offer just that.

If the Bank of England keeps interest rates steady — or, better yet, brings them down as some are predicting — then we could see even more activity across the board. The government’s focus on housebuilding and growth could also help boost confidence, but investors will want to see tangible progress, not just promises.

Quality will continue to be the driving force. Businesses and investors have become much more discerning, and sub-par spaces just aren’t cutting it anymore. As we step into 2025, we’re ready to help keep Warwickshire’s commercial property market moving forward and thriving.

 

And finally – what is your favourite part of Christmas dinner?

I always look forward to a delicious Christmas dinner, but the food I absolutely must have on my plate are pigs in blankets. Chipolatas wrapped in bacon – you can’t beat it!

I hope everyone enjoys tucking into their own Christmas meal and having a well-deserved break at the end of another busy year! From myself and everyone at Wareing & Company, have a Merry Christmas and a Happy New Year!

 

Machine tool manufacturer to move to Stratford from Birmingham and create 20 new jobs

A multinational engineering firm is moving its UK base from Birmingham to Stratford-upon-Avon and creating up to 20 new jobs in the process after Wareing & Company finalised a deal.

GROB Machine Tools UK, which currently employs 20 people, is set to move into the former Building Profiles unit on Timothy’s Bridge Road in Stratford and expand its team once a refurbishment of the site is complete.

The company, originally founded in Germany, manufactures machines used to create components used in a wide variety of sectors, such as automotive, aerospace, medical, and energy.

And after winning a 200 million-Euro contract with a major original equipment manufacturer (OEM), the time was right for the UK branch of the company to move away from its Birmingham base and into bigger premises.

The 14,000 sq ft unit was let to GROB Machine Tools UK after Jonathan Blood, director at  Wareing & Company, completed the deal.

Louis Hill, Managing Director of GROB Machine Tools UK, said: “We had outgrown our base in Birmingham, and we needed a site that not only had a good factory floor, but high-quality office space too.

“We saw there were lots of small units that had this, and lots of incredibly large warehouses, but we needed something that fell somewhere in the middle.

“The unit in Stratford that Wareing & Co promoted ticked all the boxes. It has manufacturing space, office space, and enough space for a showroom where we can bring current and prospective customers to highlight the work we do.

“And staying in the Midlands was key for us – we work across the country and into Ireland too, so having a central base that is easily accessible is very important.

“It’ll also be a nice bonus to be in a town like Stratford with all of its history and charm. GROB Machine Tools UK was originally based in Wellesbourne before it moved to Birmingham, so it’s great to be returning to Warwickshire.

“We’re hoping to be all moved in within a few weeks and we are really excited to start this new chapter in our company’s history.”

Jonathan Blood, director at Wareing & Company added: “GROB Machine Tools had very clear requirements about what it wanted, so it was brilliant to be able to find Louis and the team a site that was perfect for them.

“This deal will bring high-quality jobs into Stratford and ensure a unit that had been occupied in Stratford for a very long time by Building Profiles does not sit empty. We are looking forward to seeing GROB Machine Tools make their mark in Stratford.”