Market snapshot

Office Market Pulse Birmingham Q2 2015

Following the strongest Q1 since the downturn, Birmingham's office market resurgence continued in Q2 with a record take-up of 521,136 sq ft.

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In this issue:

Record Q2 take-up for Birmingham office market

  • The Birmingham office market saw the strongest Q2 since 2008, with a total of 521,136 sq ft take-up (40 deals) recorded; representing 75% of the annual average in just one quarter.
  • The square footage transacted in Q2 represents a staggering 358% increase in take-up compared with the same quarter last year.
  • The HSBC deal contributed 210,000 sq ft to the total take-up, but even without this transaction, Q2 take-up was still 174% more than Q2 2014.

For an annual comparison of take-up click here.

Significant occupational transactions Q2 2015

Property Size (sq ft) Landlord(s) Tenant /Purchaser Lease information
2 Arena Central 212,000 Miller Developments HSBC Pre-let
Eastside Locks 46,000 Goodman  BCU Pre-let
54 Hagley Road 35,000 Opus Land Extra Energy 10 year lease
£11.00 per sq ft


Wealth of development underway

  • The race to satisfy increased occupier demand is heating up with a number of new schemes in the pipeline such as 55 Colmore Row, 2 Cornwall Street, and Temple Court, which will all complete next year.
  • Inward investment in the city continues with Extra Energy having taken 35,000 sq ft and rumours abound regarding other sizeable investors looking closely at a revitalised Birmingham. 

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

Bull run continues as investment booms in West Midlands

Investment in commercial property across the West Midlands region has jumped by 32 per cent in Q2 compared to last year. Our latest UK Investment Transactions report found that the region was the second strongest performing region in the UK behind the South East with total transactions of £603m – 40 per cent ahead of the five-year average.

The figures came against a national backdrop of £36bn invested in the first half of 2015 – the second highest figure on record with investment in the second quarter up by a third on the same period last year although the number of deals fell.

The largest deal of the quarter in Birmingham was Legal & General’s purchase of 1 Colmore Square for £87m.

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

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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 Advisory - Birmingham.

0121 237 2307

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