Market snapshot

Office Market Pulse Birmingham Q3 2015

Q3 2015 was a stellar period for investment in regional offices, with over £380m of transactions in the West Midlands alone and 3 deals of over £80m in Birmingham.

In this issue:

Poor Q3 performance not a cause for concern

Q3 figures represent the lowest Birmingham city centre office take-up figures since records began in 2006 and a 42% decrease on the same quarter in 2014, however we anticipate the total take-up figure will set a new record and eclipse the 960,000 sq ft record set in 2008

A total of 90,779 sq ft was transacted in Q3 across 27 deals

The average letting was 3,362 sq ft which represents a 75% decrease from the record breaking Q2



Significant occupational transactions Q2 2015

Property Size (sq ft) Landlord(s) Tenant /Purchaser Lease information
Cantebury House 10,406 Ripon Investments Platform Securities 10yr lease with 5 yr break option @ £15.00 per sq ft
Colmore Plaza  7,720 Ashby Capital  Freeths 10yr lease with 5 yr break option @ £27.50 per sq ft
Imperial House 7,014 Kennedy Wilson Optical Express 10yr lease with 4th yr break option @ £16.50 per sq ft

 

Development remains strong

The opening of the newly refurbished New St Station and John Lewis both continue to support a very strong Birmingham narrative

Speculative schemes at 2 Cornwall St, 103 Colmore Row, Paradise Circus and 55 Colmore Row remain on track for development



Investment overview

Q3 2015 was a stellar period for investment in regional offices, with over £380m of transactions in the West Midlands alone and 3 deals of over £80m in Birmingham. 

Significant transactions included Colmore Plaza, acquired by Ashby Capital Limited for £140 million; One Colmore Square which was purchased by Legal & General for £87.3 million and Birmingham Business Park acquired by Blackrock for £84.8 million.




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Alex Tross birmingham commercial property consultant office agency
Alex Tross

0121 237 2307

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Alex Tross
Director - Head of Office Agency - Birmingham.

0121 237 2307

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