Large, refurbished space to energise office market
Large, refurbished space will energise the Solihull office market in 2023, according to property agency KWB.
KWB’s latest research suggests that larger space coming to the market will free up options for occupiers that have been restricted in recent years, by offering the high-quality offices they need to relocate.
The M42/Solihull office market 2022 review also reports an annual office take-up of 221,548 sq ft across 44 deals, compared with 257,583 sq ft in 2021 and a five year average of 270,977 sq ft.
Key findings of the 2022 review include:
The largest deal of the year saw the government-funded UK Telecoms Lab take 37,509 sq ft at 3010 and 3020 The Crescent at Birmingham Business Park.
Birmingham Business Park accounted for 37 per cent of the take up, with nine businesses transacting on 82,434 sq ft. After UK Telecoms Lab, the largest deal was with Persimmon Homes which took 10,723 sq ft at 6190 Knights Court
More than 65 per cent of 2022’s transactions were in the 0-5,000sq ft and 5,000-10,000 sq ft size bracket, which is the highest since records began.
Four housebuilders accounted for 29,906 q ft of space, with the largest involving Hayfield Homes which took 11,244 sq ft at Cala House.
Several transactions were to accommodate expanding businesses, including Aspen Bridging at 2 Stratford Court, Dodd Group at Quartz Point and Handelsbanken at 2 Topaz.
Newly refurbished space on the way includes AIR, Portland house, One Central Boulevard and Blake house which together will introduce 228,000 sq ft to the market.
Malcom Jones, head of office agency at KWB said: “Lack of availability has been a severely limiting factor for the market. However, with these buildings all coming on stream, the market will have more manoeuvrability – and in turn will free up other currently occupied offices for refurbishment and future marketing.
“The market’s cycle of lease events will also come into play this year, with many companies reaching the end of their five and 10 year leases. The combination of this and new availability is well-timed and, whilst some occupiers will undoubtedly decide to renew at their existing location, others will want to relocate.”
