Birmingham ranked second amongst regional cities in legal sector report
BIRMINGHAM’S position as a centre for the legal sector has been confirmed in new research by property consultants CBRE.
When comparing the total amount of office space occupied by the legal sector in ten regional cities, Birmingham ranked second with circa 782,000 sq ft.
Bristol was first with 874,000 sq ft.
Birmingham also has the third highest number of offices that are home to legal practices outside London.
CBRE’s ‘Law in the Regions’ report provides an overview of the legal sector in the UK, comparing total floor space, average floor area per fee earner, average rent and average rental cost per fee earner.
The report also looks at the main drivers influencing real estate strategies of law firms in 2016.
The average area per fee earner in Birmingham is 428.5 sq ft, with an average rent of £25.62 per sq ft. The average annual rent per fee earner in the city is £11,066.
In addition, the report investigates the reasons behind the recent wave of leasing activity by law firms across the UK. Take up of office space by the legal sector has increased in Birmingham in the past few years.
Recent deals include Shakespeare Martineau’s 22,500 sq ft letting at No 1 Colmore Square following the merger of the two local firms last year, and Weightmans’ 14,700 sq ft letting at St Philip’s Point.
Ashley Hancox, executive director in the office agency team at CBRE, said: “Following some difficult years during the recession the legal sector in Birmingham is in much better shape, with higher levels of profitability being achieved.
“Many of the firms interviewed as part of our research said they are now in expansion mode, be it organic or acquisitive.
“The region is well placed to accommodate greater demand for legal services, having attracted growth in the sector with lower costs and higher quality of life being key.
“There is pressure from increased competition from a cross section of law firms, some of which are freshly merged and able to achieve larger economies of scale.
“There is also sustained pressure from ever more expectant corporate clients seeking ever more value in terms of higher quality services for less cost.
“As a consequence, conditions are now ripe for law firms to review their real estate footprints to ensure they are a good fit with future business strategy. This might mean extending geographical footprint to be located near core clients or concentrating certain functions into lower cost, more efficient ‘global legal service centres’.”
