Planned Solihull office conversions set to boost landlords with increased rents

Plans to convert nearly 22.5% of Solihull town centre office space to residential use will increase rents and benefit existing office landlords, according to a Midlands office agent.

Nigel Tripp, director of Birmingham and Solihull-based commercial property agency KWB, says that 200,000 sq ft of office accommodation is to be converted to residential space in Solihull Town Centre.

Tripp said: “This represents a significant downsizing of Grade A and AB office stock by some 22.5%, and with no new build office space underway, or planned for the foreseeable future, this will provide a further upwards impetus to rents which we expect to grow from their present headline figure of £22.50psf.

“Landlords who retain their office buildings can expect to reap the benefits, especially with the current shortage of available space.

“The office vacancy rate in Solihull town centre presently stands at 8.5%, but if you remove the space which is under offer, and that which requires major refurbishment of at least six months, it is actually just 3%.  It’s no wonder that increasing number of occupiers are instructing us to search for, and acquire, office space on their behalf.

“The only option now for occupiers seeking a substantial Headquarters building, of 40,000 sq ft and above, in the town centre, is to look to a potential design and build option.  However, with current land values and the ever increasing cost of building, they would have to pay around £25psf for the development to stack up.”