First Evidence Birmingham's Clean Air Zone Is Shifting Property Market Demand

So now we have the evidence. Birmingham’s new Clean Air Zone congestion controls are literally changing the shape of the city’s property market, if this new urban logistics scheme is any guide.

Five months after it was launched, the control zone — which covers all city centre roads within the A4540 Middleway Ring Road but not the Middleway itself — has had its first undeniable effect on the commercial property scene.

A developer said its plans for a new 93K SF urban logistics hub located outside the zone at Aston, just beyond the control zone’s boundary, have been inspired by the controls, which charge vans and light goods vehicles £8 a day, and heavy goods vehicles/lorries £50 a day.

The site on Aston Hall Road, Birmingham, fronting main Lichfield Road, includes 18 units. It has been acquired by Northwood Urban Logistics. One unit is pre-let and the remaining units will be available from March 2022.

“Significantly, Urban Express Park is located outside the Birmingham Clean Air Zone, meaning that its occupiers will attract lower additional transport costs — associated with the CAZ charges of £50 per day per HGV — compared to those companies situated within the CAZ,” Northwood Investors said in a statement.

The site is next to Junction 6 of the M6 motorway.

“The area has undergone significant investment in recent years, attracting occupiers such as Hydraforce, Salts Healthcare and Guhring, and the site’s position close to the city centre and J6 M6 makes it a strong location for last-mile delivery, as well as being outside the city’s new Clean Air Zone,” Gerald Eve partner John Sambrooks said.

Northwood Urban Logistics acquired the site from Chancerygate and partner Hines earlier this year, renaming it ‘Urban Express Park’.