THE take-up of office space in Birmingham reached a four-year nadir in the aftermath of Brexit, with just one deal agreed for more than 7,300 sq ft.
Just 95,546 sq ft of space was taken in the three months to September 30, led by Bouygues signing for 17,221 sq ft at Albert House. The second largest deal was for 7,255 sq ft, agreed by corporate travel agents Carlson Wagonlit on Colmore Row.
It is the first quarter to record take-up of less than 100,000 sq ft since the second quarter of 2012, and only the fourth of the last 35 quarters, since the start of 2008.
Jonathan Carmalt of the Birmingham Office Market Forum, which collates the quarterly figures, said: “Whilst the Q3 take up figures are in isolation below average, they follow an exceptional first half of 2016 and a record breaking 2015.
“Birmingham has experienced equivalent factors impacting most of the regional office markets, namely the uncertainty seen in the run up to Brexit and fewer lease events by virtue of the quieter leasing activity experienced five years ago.”
However the group remains upbeat about the city’s attractiveness, especially in light of the support that remains for HS2, which is already considered to have been a key factor in some major property deals, including HSBC’s planned move to Arena Central.
He added: “In addition a number of active HS2 related enquiries are awaiting decisions, pending recommitment by government. However, the outlook remains positive for the remainder of the year and it is clear that Birmingham will see fresh impetus in the office market when government clarifies its commitment to HS2, which remains on track to receive Royal Assent by December.”
The rolling annual total remains above 800,000 sq ft, outperforming the six-year period before HSBC committed to Birmingham in spring 2015.
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