Back-to-back strong quarters puts Birmingham office market on firmer foundations
Office take-up in Birmingham enjoyed its strongest quarter since the first lockdown with large lettings at landmark city centre developments.
Office take up in quarter three 2021 in the central Birmingham office market totalled 242,901 sq ft in 19 deals, according to figures released by Birmingham Office Market Forum (BOMF).
They included Arup’s agreement to relocate to Paradise Birmingham and x+why’s deal at 103 Colmore Row.
The deals make the period the best performing since Q1 2020, which was dominated by BT Group’s signing of the largest-ever letting within a single building in Birmingham when it took 283,000 sq ft at Three Snowhill.
A spokesperson for BOMF said: “It is positive to see the quarter-by-quarter increase in office market activity continuing throughout the year.”
The second quarter of this year had seen 203,499 sq ft of space taken.
When added to the 44 deals totalling 253,336 sq ft recorded in the first half, the year to date totals 496,237 sq ft in 63 deals, marking two consecutive quarters of growth.
Quarter three saw the first lettings secured in the city’s latest new builds at 103 Colmore Row and One Centenary Way.
This included built environment consultancy Arup confirming it had signed a long-awaited pre-let deal which will see it move its third largest global office to Paradise Birmingham, bringing 1,000 jobs to the city centre.
By moving from its existing Solihull campus, Arup is the first occupier to commit to One Centenary Way, the latest building under construction at Paradise.
Arup’s new ‘city campus’ will be set across 68,000 sq ft of space over three floors of the new 13 storey building, which is due to complete in early 2023.
Other big deals included significant take up from a new entrant to the city in the flexible workspace sector was also seen, across two deals.
Flexible workspace provider x+why announced it is set to open at Brindleyplace after agreeing a joint venture to operate 40,000 sq ft of space at the estate.
Landlord Hines has partnered with x+why to operate the first, second and third floors at 6 Brindleyplace.
The company also signed a deal with Tristan Capital for 34,500 sq ft at 103 Colmore Row.
In addition, there was over 109,000 sq ft of alternative uses transacted over four office buildings that did not meet the current BOMF definitions to be included as office take up.
