Office deals hit lowest level for decade in ‘challenging’ second half

OFFICE take-up in Birmingham in the second half of the year was significantly lower than in any year since the credit crunch.

Data collated by the Birmingham Office Market Forum (BOMF), which has been pulling together deals from all of the agents in the city since 2008, showed 192,937 sq ft of space was taken up in the final six months of 2016.

It was 40% lower – more than 130,000 sq ft – below the previous H2 low, recorded in 2013.

The annual total was 692,729 sq ft from 139 deals, which was 280,000 sq ft lower than 2015 despite having seven more deals.

2015 was dominated by HSBC’s 212,000 sq ft Arena Central deal, which was the same as 2016’s three biggest deals by PwC, Network Rail and Pinsent Masons put together.

However there are requirements in the market which are expected to come forward.

BOMF said: “The 2016 outcome was down on the record take up seen in 2015, with a challenging second half to the year. However the total is very close to both the five and 10-year averages.

“The outlook remains positive for 2017 with both the HS2 and Government Property Unit (GPU) demand likely to come forward, together with the delivery of a number of new high profile office refurbishment schemes.”