Market snapshot

Office Market Pulse Birmingham Q1 2015

Birmingham recorded its strongest first quarter of commercial lettings since the economic crisis of 2008 with just under 130,000 sq ft let in Q1. As optimism in the economy continued to build, we also saw a number of speculative schemes making significant steps forward. 

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In this issue:

Birmingham office market returns to pre-crash levels

  • The Birmingham office market saw its strongest Q1 take-up since the economic crisis of 2008, with 129,430 sq ft total take-up.
  • A total of 29 deals were transacted.
  • Q1 saw a 26% increase in take-up compared with the same quarter in 2014.

For an annual comparison of take-up click here.

Significant occupational transactions Q1 2015

 Property Size (sq ft) Landlord(s) Tenant /Purchaser Lease information
Neville House, Harborne Road
Edgbaston
19,656 BI Group Fast Item Ltd Leasehold sale
Four Brindleyplace  15,960 Hines-Moorfield   Michael Page 10 year lease with break option at year 5
£26.00 per sq ft
1A & 1B Greenfield Crescent,
Edgbaston
9,584 Remax BMG Research Leasehold sale

 

Continued inward investment for the city

  • The scarcity of grade A office space is being addressed with a number of new schemes in the pipeline such as One and Two Chamberlain Square at Paradise Circus, 55 Colmore Row, and 19 Cornwall Street already on site.
  • A number of speculative refurbishments are also underway including 2 Cornwall Street, Alpha Tower, and Civic House.
  • The improved economic climate has seen the pendulum swing back in favour of landlords, with increased rents and reduced incentive packages.
  • Inward investment in the city has continued with the recent announcement that HSBC are to take 210,000 sq ft at Arena Central.

For a breakdown of current supply by grade, click here.

Record quarter for UK property investment

Uncertainty about the outcome of the General Election has failed to dampen investment in the West Midlands and the wider UK commercial property sector during the first quarter of 2015.

The latest edition of Lambert Smith Hampton's UK Investment Transactions report reveals that total investment reached £19.1bn in the opening three months of 2015, 59% higher than the same time last year and a new record for a first quarter. 

A surge of overseas investment was a major driver of this strong performance, with inflows from international investors increasing by 57% year-on-year to reach £9.6bn – half of the quarter’s total volume.

In the West Midlands, investment in the first quarter reached just under £1.2 billion, an increase of more than 18% on the same period last year when levels reached £1.01 billion.

Read our latest UK Investment Transactions (UKIT) report here.

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Alex Tross

0121 237 2307

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Alex Tross
Director - Head of Office Agency - Birmingham.

0121 237 2307

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