A Wave of Inward Investment into the London to Birmingham M40 Corridor

White Commercial Surveyors is seeing strong demand from occupiers looking to move into the northern M40 corridor, with close to 1 million sq ft of industrial and logistics accommodation currently under offer or recently let.

At Banbury, close to Junction 11 of the M40, around 600,000 sq ft of modern, large-scale warehouse accommodation is currently being leased to new occupiers and businesses moving into Oxfordshire.

One of the most recent deals is the letting of Unit 6 Central M40, a 199,000 sq ft warehouse, to Rinkit. The company has expanded from its previous 75,000 sq ft unit at Central M40, reflecting the scale of growth and demand from businesses already operating in the area.

White Commercial is also aware that the 23-acre former Kraft/Jacobs Douwe Egberts site in Banbury is currently under offer to a major logistics operator.

Demand is not limited to larger warehouses. The mid-box market is also seeing good levels of activity. At Cabot Park in Bicester, a further unit has recently completed, taking the total space let across four transactions to more than 100,000 sq ft. This forms part of the final phase of the 600,000 sq ft scheme developed by Albion Land.

Units 2 and 6 at Tramway Industrial Estate, totalling around 30,000 sq ft, are also currently under offer. Further north, around 30,000 sq ft has recently been let at Appletree Trading Estate to another new entrant to the region.

Chris White, Managing Director of White Commercial Surveyors, who has worked along the M40 corridor for more than 40 years, comments:

“This is important because the demand we are seeing is not coming from just one type of occupier. We are seeing businesses looking for 10,000 to 20,000 sq ft alongside much larger requirements from companies looking for sites to support national distribution.

“There is a clear level of inward investment into the region, and that is helping to strengthen the M40 corridor as a business location.”

The attraction of the M40 corridor also extends further south towards Oxford and Bicester. Siemens Healthineers is investing £250 million in a new facility at Bicester, close to Junction 9 of the M40. The new facility, understood to be around 600,000 sq ft, will be clearly visible from the motorway and represents a significant investment in the area.

Chris adds:

“The expansion and relocation of these businesses is good news for the region. It brings new investment, creates employment and increases the number of businesses operating here.

“That in turn supports the wider economy, with more people working in the area and increased demand for local shops, services and other businesses.

“From what we are seeing in the market, the M40 corridor continues to attract businesses looking for good transport links and access to the wider Midlands and Oxfordshire markets. The level of activity we are currently seeing is a positive indication of the strength of the area as a commercial location.”