Birmingham Business Park dominates Solihull Q2 office market

One site continues to dominate the lettings market in the M42 and Solihull office sector.

In Q2 2017, Birmingham Business Park accounted for the three largest lettings in the area, totalling nearly 35,000 sq ft.

The site was also responsible for more than half the total space disposed of (62,508 sq ft) during the period, commercial property agency KWB has said.

The letting of 20,774 sq ft to BCA Logistics at 1320 Solihull Parkway was the largest deal completed in the quarter – it was also the largest transaction in the Solihull office market, and in the out-of-Birmingham office market, for the past 12 months.

The other major transactions were the 7,771 sq ft letting at Bishops Court to Costain, for a second relocation of parts of its business to Birmingham Business Park, and the acquisition by Diamond FS of 6,384 sq ft of freehold space at 2220-2226 The Crescent.  This was also the larger of the two transactions of freehold office space in the quarter.

Nevertheless, in KWB’s M42 And Solihull Office Market Research – Q2 Report, Mark Robinson, a director in the firm’s Office Agency Team, said the 140,010 sq ft of lettings completed in year-to-date, meant the Solihull office market was currently running slightly short of its long-term average.

“The transaction figures are only very slightly down on the average.  Due to its diverse range of occupiers, the Solihull office market is relatively unaffected by economic uncertainty,” he said.

“Birmingham Business Park has reasserted its dominance in the market following an investment programme which has delivered better on-site facilities and amenities and refurbished office space which, in turn, is helping to both attract and retain occupiers.

“The M42 and Solihull office market has much to offer companies who operate in the Midlands or across the country. Transport links and connectivity are huge selling points for the area.  Birmingham Airport, Birmingham International train station and Junction 6 of the M42 are some of the biggest benefits of the location of parks such as Birmingham Business Park and Blythe Valley Park, as well as the variety of amenities nearby, most notably Resorts World, the NEC and the Genting Arena.”

The Q2 period also saw Solihull benefit from inward investment with Goldbeck Construction and Ferranti Computer Systems moving to Eagle 2 and Birmingham Business Park respectively, while Solihull town centre proved appealing for SMEs, with four lettings.

However, KWB said there was still a lack of supply in the market.

“Recently completed and forthcoming refurbishments, such as One Central Boulevard at Blythe Valley Park, 2800 The Crescent at Birmingham Business Park, and Trinity Central in Solihull will add much-needed, high quality office stock to the market, but these are likely to be snapped up very quickly,” said Mr Robinson.

“These will be welcome contributors to the transaction figures of the coming few quarters, but not a solution to the ongoing demand for office space in the area.

“Furthermore, while we see HS2 contractors locate administrative divisions within Birmingham city centre, contractors are expected to require ‘project space’ to deal with ‘on the ground’ logistics, as work is subcontracted out and other companies brought into the fray. This could, potentially, be a real ‘shot in the arm’ for the M42 and Solihull office market, involving substantial inward investment.”