Final-quarter flourish for take-up of Birmingham office space

The take-up of office space in Birmingham city centre had something of a fourth-quarter flourish to finish the year in line with the long-term average.

Birmingham City University’s 118,240 sq ft letting at Belmont Works in Eastside was the biggest deal in the quarter and the year, although only half the size of 2017’s largest letting, HMRC’s pre-let at Arena Central.

It boosted the annual total to 754,129 sq ft from 113 deals – almost exactly the same as the 10-year average of 750,521 sq ft, despite being 250,000 sq ft below last year’s record 1m sq ft take-up.

Office take-up in Birmingham by quarter, 2014-2018:

The first quarter has been the weakest in five of the last eight years, but the city’s property agents say enquiry levels in 2019 “remain encouraging”.

The Birmingham Office Market Forum (BOMF), which collates the office take-up figures, is also optimistic about the impact of new Grade A space which should be completed later this year.

BOMF said: “Office enquiries remain encouraging moving into 2019 across a number of sectors. With scarcity of current grade A office supply, the delivery of the next generation of new build developments completing at Three Snowhill and Chamberlain Square, Paradise later this year will be well received.”

Large deals at Arena Central agreed in 2015 and 2017 boosted total take-up in those years:

One of the office suites within Norfolk House

Birmingham’s 5 biggest office deals in 2018

1. 118,240 sq ft: Birmingham City University; Belmont Works, Eastside; December

2. 46,100 sq ft: WSP; the Mailbox; January

3. 38,162 sq ft: BE Group; Somerset House; May

4. 36,484 sq ft: Secretary of State for Communities and Local Government; Norfolk House; August

5. 26,799 sq ft: Environment Agency; Aqua, Lionel Street; June