HS2 HQ will transform city’s core office market, say property experts
HS2 Ltd’s decision to base its construction HQ in Birmingham will create both massive opportunities and challenges for the city’s office market, according to property experts.
The company behind the high-speed rail link has taken 100,000 sq ft at Two Snowhill in central Birmingham and from its offices there will oversee the construction of phase one of HS2 – the line between Birmingham and London.
JLL’s regional chairman Jan Thompson said: “I think they’ve made a great choice in going for the Ballymore scheme (Snow Hill). It’s a landmark building, and right at the heart of the traditional Colmore Row business district.”
The veteran property scene observer, who advised Deutsche Bank on its move to Birmingham’s Brindleyplace from London, says the news will have a huge strategic impact on the city’s core office market.
“In the short-term, the removal of 100,000 sq ft of space will eat up available stock, which will then kick-start a new wave of office developments, some on a speculative basis, which is certainly much needed,” he said.
“In the longer-term, we’ll see a new office quarter created around Curzon Street. Now everyone knows the construction HQ is coming to Birmingham, companies will be scrambling to take space in the same area, so we’ll have an HS2 supply chain here.
“The initial 100,000 sq ft letting is great news for the property market and in terms of job creation, but I’d expect to see that figure doubled, perhaps even trebled, in the medium-term.
“At the same time, those companies and organisations which have been mulling over relocations within the city, to new Grade A locations, notably Two Snow Hill and Colmore Plaza, will really have to act quickly, or there’ll be no decent chunks of space available, until the new schemes are brought forward.”
Stephen Hemming, head of planning and development consultancy at Lambert Smith Hampton in Birmingham, said that the headquarters for HS2 Ltd would be based in the city is a “massive vote of confidence” for Birmingham.
He said: “Today’s announcement is very positive news for Birmingham, as long as it doesn’t add another layer of bureaucracy in decision making.
“The idea of a regeneration company certainly worked for the Olympics and Canary Wharf in London but it needs to be clear that this isn’t replicating what other organisations are already doing.”
