Market snapshot

Office Market Pulse Birmingham Q2 2013

The Birmingham office market exceeded 200,000 sq ft of take-up in Q2 following Deutsche Bank's acquisition of 5 Brindleyplace (134,000 sq ft), and DWF's acquisition of 22,627 sq ft at One Snowhill. With current deals being signed for Weightmans and Allianz, 2013 promises to be a strong year for the Birmingham office market.

You can download a PDF version of this Birmingham Office Market Pulse, or to read and sign-up to receive Office Market Pulses from other UK centres, click here.

In this issue:

The return of the large occupier

  • Birmingham has seen a return of large occupiers in Q2 with Deutsche Bank acquiring 5 Brindleyplace (134,000 sq ft) from Hines and Moorfield.
  • DWF have also completed the acquisition of 22,627 sq ft at One Snowhill.
  • As a result, total take-up year to date is 227% of that achieved for the corresponding period last year. With more large occupiers such as Weightmans and Allianz yet to take space, 2013 promises to be a strong year for the Birmingham market.
  • Meanwhile, the out of town market continues to see a good turnover of deals with 17 lettings and sales taking place in and around the M42 during Q2.
  • While take-up is actually 22% down on the same date in 2012, this is due to the 65,000 sq ft letting of Eagle 3 to Virgin Media. Discounting that deal, take-up is currently 40,000 sq ft ahead in 2013.

For an annual comparison of take-up click here.

Significant occupational transactions Q2 2013

Property Size (sq ft) Landlord (s) Tenant / Purchaser Lease
5 Brindleyplace 134,000 Hines and Moorfield Deutsche Bank Confidential 
One Snowhill          22,627         CommerzReal    DWF     Building purchased for part occupation

Increased occupier demand for design and build

  • With grade A take-up gathering pace, and no new build other than the residue of Two Snowhill currently on the market, larger occupiers have a limited number of buildings that can accommodate their requirements.
  • This will bring pre-let and design and build opportunities back into focus as occupiers seek alternative options.
  • With occupier concern over timing of new build opportunities, only developments such as Sterling Property Ventures’ Great Charles Square, which can demonstrate quick deliverability, will succeed.

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

Regions see an upturn in investment activity

In the last quarter we have seen a clear shift in sentiment towards regional offices. While the focus of institutional investors remains largely with the 'Big 4,' there has also been an upturn in activity within the wider regional market from property companies and private investors. Recent transactions of note include:

  • 84 Colmore Row, Birmingham- £11.00m (5.8%)
  • Tungsten Building, Blythe Valley- £6.26m (6.94%)
  • Iceni Centre, Warwick- £10.85m (10.6%)
  • Worldwide House, Peterborough- £16.00m (12.70%)

To view our latest UK Investment Transactions (UKIT) report, please click here.

How can we help?