Birmingham office deals market remains subdued
The take-up of office space in Birmingham improved in 2021 but still delivered the second-lowest total in nine years.
Data from the Birmingham Office Market Forum (BOMF) showed 2021 ended with 656,735 sq ft taken as the pandemic continued to impact companies’ willingness to commit.
A BOMF spokesperson said: “In a year where the market was adjusting to ongoing pandemic restrictions including a period where a return to the office was encouraged, 2021 showed a return towards longer term averages, with a significant improvement in the number of deals when compared with
2020.”
There were 94 office deals in 2021, compared with just 50 in the previous year.
Of the seven largest deals of the year, four were for pre-lets while serviced office providers accounted for two others plus one of the pre-lets.
The pandemic-affected 2020 was dominated by BT’s deal for 283,073 sq ft at Three Snowhill, which was dated January 1.
In the two years minus one day that followed, 894,472 sq ft of space has been taken – only 20% more than the 10-year average before the pandemic.
The spokesperson added: “The latest new build development at 103 Colmore Row completed in 2021, following on from Three Snowhill and 2 Chamberlain Square, with construction of One Centenary Way also progressing at a pace.
“With Birmingham’s strong fundamentals of low levels of grade A supply, 2021 saw headline rental growth with a trend for occupiers upgrading to high quality grade A office space. In addition, as we move into 2022 there is a strong pipeline of identifiable demand to be satisfied.”
