Law firm reduces city centre space by 14,000 sq ft
Weightmans has reduced its floor space by more than one-third after restructuring its lease at St Philips Point in Birmingham.
The law firm will save £100,000 a year in rent after taking a new 10-year lease at the Temple Row building.
It currently pays £606,000 for space on three floors, but is going to move out of the 14,200 sq ft on the building’s first floor.
Richard Osborn, Weightmans partner and Head of the Midlands offices said: “Headcount in Birmingham is increasing but we have recognised the evolution of working life and our staff have embraced the benefits of flexible and agile working, following successful roll outs of similar policies in our Manchester, Leicester and London offices.
“This enables us to function more efficiently, continue to recruit more great talent and successfully limit our environmental impact – all with a reduced office footprint.”
The new deal sees it occupy 23,200 sq ft across the upper ground and third floors. The lease has a five-year break clause and Weightmans will receive an incentive of six months’ rent free.
The building’s owner, Ediston Property Investment Company, pointed to the lease restructuring representing a 46% increase on the rent currently being paid on the two floors.
It also expects to be able to increase its income from the first floor, once let, and it is forecasting an overall increase in net income from the property of around £220,000 per year.
Calum Bruce, director of investment at Ediston Properties, said: “Weightmans has been a tenant in the building for over eight years, so we are pleased to have been able to structure a deal which extends their stay. The increase in the rental tone shows that there will always be demand for good quality offices in the right locations.
“We have always said that void space is an opportunity and the first floor is just that. We are confident that with the right refurbishment we will identify a tenant to lease this space and secure additional income for the company.”
