New high quality office accommodation set to attract occupiers to Birmingham
Over the next four years, occupiers in Birmingham city centre are set to have a large choice of high quality, Grade A office accommodation.
A pipeline review conducted by commercial property consultancy, Sanderson Weatherall has shown that between now and 2021, 2.8m sq ft of Grade A office space is programmed to become available in the city as a result of completing new developments, and refurbishment of existing accommodation.
The past ten year average take-up of office space in Birmingham city centre is 663,000 sq ft per annum, with a recognised shortage of Grade A space previously limiting the choice available to occupiers looking to move into the city.
Peter Fowles (left), head of Sanderson Weatherall Birmingham, said: “Birmingham is currently undergoing a resurgence not witnessed since the 1960’s and 70’s. The city will soon have both the quantity and quality of available office space to attract even the most discerning national and international occupiers.
“Birmingham city centre has a total office stock in the region of 17.5 million sq ft. At present there is some 2,881,521 sq ft of new or extensively refurbished Grade A office space suitable for a 20,000+ sq ft occupier. As of the start of 2017, around 340,500 sq ft was pre-let, with 387,390 sq ft available and 2,153,631 sq ft in the pipeline.
“It is important that both the supply curve and market demand are adequately nurtured. The city’s developers will no doubt be constantly reviewing this so that the market is balanced and does not become distorted by over-supply or under-supply; it is in everyone’s interests that this is managed carefully.
“What is certain is that occupiers now have a good choice of quality Grade A city centre offices to choose from and this will bring opportunities for growing businesses to locate in the city centre.
“The premium buildings are quoting rents of up to £35.00 per sq ft, but there is also space available at £26.00 per sq ft, making Birmingham city centre a competitive option for occupiers seeking quality offices.”
