Government department signs up to landmark office building

The Secretary of State for Housing, Communities and Local Government department has acquired 48,787 sq.ft. of commercial space in a landmark office building in Birmingham, in what is understood to be the biggest office deal agreed in Birmingham and the West Midlands since the UK lockdown ended.

The owners of the building known as B1, developers Galliard Homes and Apsley House Capital, have secured the Government department on a 10 year lease at £15.75 per square foot in a deal worth up to £8m in rental income and were advised by commercial agents Lambert Smith Hampton and Avison Young.

The government has not formally confirmed the end use of the property but industry experts believe that the space will provide a significant regional hub for The Department of Work and Pensions.

B1 provides a total of 92,472 sq.ft. of premium office space, with the landmark Government deal leaving only a self-contained suite of 16,500 sq. ft. available to let.

Chris Duffy, acquisitions and commercial director at Galliard Homes, says: “This is a massive commercial deal for Birmingham and the West Midlands, the largest since the lockdown ended. The decision by the Secretary of State for Housing, Communities and Local Government department to acquire these premises in B1 underline the importance of Birmingham as the second city in the UK and the capital of the Midlands.”

Alex Tross, director and head of office advisory at Lambert Smith Hampton says: “We are delighted to have successfully negotiated this deal which illustrates the resilience of the Birmingham office market in spite of the wider economic challenges.”

George Jennings, director at Avison Young, added: “Those challenges will see occupiers even more focused on cost and B1 offers exceptional value alongside a generous parking provision and efficient, column free space that allows occupiers to implement COVID-19 compliant distancing protocols with relative ease.”

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