Research reveals increase in office take-up in first quarter of 2024

According to Savills research, Birmingham saw a rise in office take-up, reaching 203,385 sq ft in Q1 2024.

This was a 32% increase compared to Q1 2023 and an 11% and 19% increase against the five and ten-year averages, respectively.

The largest deal was the BBC’s pre-letting of 84,000 sq. ft at Typhoo Wharf, which is now named ‘The Tea Factory’. 

Grade A office space accounted for 84% of the total take-up, the highest proportion since 2020.

Due to this demand and a shortage of space, the headline rent has risen to £42.50 per sq ft, with expectations of reaching £43.50 per sq ft by the end of the year.

Forecasts suggest some rents could hit £48 per sq ft by 2028, reflecting an expected growth of 13%.

In Q1 2024, the technology, media, and telecommunications (TMT) sector made up 47% of the take-up, while public services, education, and health sectors accounted for 33%.

The education sector alone took up 44,670 sq ft, highlighted by a single deal with University College Birmingham at Centenary Square, Baskerville House.

Ben Thacker, director at Savills Birmingham Office Agency team, said: “The increased take-up in Birmingham’s office market, combined with the diversification in its occupier base, demonstrates the city’s continued strength as a key business destination.
The steady rise of the education sector is already creating an influx of new talent into the economy, which is reflected in the high graduate retention levels, and also provides landlords with an additional avenue of prospective occupier demand.

“The significant letting to the BBC in Q1 will bring a welcome boost to the city’s appeal to the creative and media industries. As we head into the second half of the year, we expect this pattern to continue with occupiers increasingly mindful of reducing availability and a limited pipeline of new developments coming through.”

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