Knight Frank to celebrate 25th anniversary in ’super-prime’ office

Independent real estate consultancy Knight Frank is all set to celebrate its 25th anniversary in its swanky new office in the “super-prime” 103 Colmore Row.

The firm signed a 15-year lease for 4,376 sq ft on the 18th floor of the 26-storey building with joint venture partners Sterling Property Ventures and Tristan Capital Partners.

Moving 50 staff from One Colmore Row after 16 years, the company says it was a time for a change. Mirroring the desire of its clients, it wanted to ensure its base is brand new grade A space that is ESG compliant.

With a dedicated business lounge available alongside a soon to be opened exclusive double-height restaurant by D&D on the 24th floor, the tenants of 103 are spoilt with amenities and panoramic views.

After two weeks in the new building, our business reporter Anna Cooper sat down with Ashley Hudson, partner, office head and head of commercial, Adam Chapman, the national head of automotive and Mark Evans, the regional head of residential development in the UK to discuss the move and the market’s focus on sustainable developments.

You’ve moved into 103 Colmore Row, what made you decide to move and why here?

Ashley Hudson
“I think we’re looking to make a bit of a statement. Our business has grown, moved on, and in particular sourcing talent is really competitive, so having top quality accommodation really helps with that

“Our clients are very interested in ESG and this build is very ESG compliant. It’s the first EPC A building in Birmingham and it’s BREEAM excellent. 103 is Unique in being brand new and in a super prime location”.

Adam Chapman
“We were keen to bring people back together, post the pandemic and we wanted to give them an environment where they flourish and enjoy what they’re doing.

“There’s huge potential here, whether it’s employment or connectivity – there’s always something going on.

“But it also shows our belief in the city, that Birmingham is the second city and we believe in the city.”

ESG compliance was vital for in deciding where Knight Frank would relocate to. Are sustainable projects being targeted by all investors now?

Ashley Hudson
“We believe there is within the office market what we’re terming ‘super prime’, and one of the really important factors in a super prime building is ticking that ESG box.

“Tenants will pay more rent for a very ESG compliant building and investors will pay a better yield for a very ESG compliant building.

“You look around the city at some of the older buildings, those buildings will will have to improve, which presents an opportunity for existing landlords and developers. Those buildings can be made ESG compliant and you can make them special. It doesn’t have to be a glass box like this. There’s a future for all the buildings”.

What are people looking for now in residential developments – has the pandemic changed what amenities they look for?

Mark Evans
“We’re almost at that point now where complying probably cost’s more. The question we get asked is will people pay? Until now, I think there’s been a degree of uncertainty.

“It seems now if you’ve got to pay 5% more for something that is super compliant, people are accepting that that’s the reality”.

Adam Chapman
“And as everything becomes compliant, there won’t be that price difference”.

Mark Evans
“If you take the city centre apartment buildings with no amenities, it’s been challenging for people.

“Now having outside space, workspace and amenity space, whether it’s built in or whether it’s open market is important for people particularly when they’re inside a one bedroom apartment, they need somewhere else to go and have a change of scenery”.

Are tenants in commercial space also looking for that change of scenery away from their desks?

Ashley Hudson
“I think it is super important if it can be provided. Here there will be a 3000 sq ft roof terrace on the 18th floor and also a business lounge.

“That’s been a huge selling point for tenants alongside the restaurant. This will also bring the public into the building so it’s not just a faceless building that sits there”.

“In the office market in the last 12/18 months, rents have gone from £35 to £40. That’s primarily down to the quality of the offer that’s been provided and the fact that developers and investors are having to provide better quality and tenants are willing to pay for that”.

Have you seen an increase in the demand for green infrastructure in the automotive sector?

Adam Chapman
“Absolutely. The problem is grid capacity, which is always going to be the issue. We are fully retained by Tesla in the UK. And you know that their biggest issue is not selling the cars. But it’s creating the infrastructure as people won’t have the belief until it happens.

“We’ve got a ready made network of about 1000 petrol stations in the UK. Clearly, they make total sense to offer both electric and petrol. And it may not just be electric, there may be alternative fuels such as hydrogen. So we’ll have multi-fuel facilities like that”.

You’re currently recruiting for a variety of roles however there is a war on talent at the moment. What is it about Birmingham that is attracting talent?

Mark Evans
“A lot of people can’t afford to live in London, or they’re commuting for an hour from outside to get into central London. We’re seeing lots of people that are renting or buying that are coming out of the southeast that want to be based in the middle of second city in a buildings like this”.

Ashley Hudson
“It ticks all the boxes, it’s got the trams, the restaurants, the universities, the retention of graduates, the diversity and it’s the most diverse city in Europe”.

You’re about to celebrate the company’s 25 year anniversary – what are the plans to mark the occasion?

Ashley Hudson
“We’re having a party day – TBC. To say a big thank you to our loyal clients who’ve been with us over many of the years, and our new clients and our prospective clients we’ll be inviting them to a party on the 18th floor”.

I’ll be waiting for my invite in the post!