Availability of office space making Birmingham competitive

BIRMINGHAM is proving to be a good value location for occupiers, according to research from DTZ.

It found the UK’s occupancy costs fell by an average of 0.3% in 2011, with the largest year-on-year fall of 11.5% seen in Birmingham.

DTZ’s research assesses the main components of occupancy costs in 124 business districts in 49 countries across the globe, ranking each location based on annual costs per work station. Occupancy costs are much more than just rent, and include outgoings such as maintenance costs and property tax.
Occupiers in Birmingham saw a decrease of 11.5% to £4,250 per annum.
 
David Tonks, senior director at DTZ in Birmingham, said: “Together with London City, Birmingham has witnessed the greatest fall in utilisation space standard and it is now the third most affordable city.

“The increased competitiveness of Birmingham as an office location is largely attributable to the continuing supply of good quality space in the city centre which has limited upward pressure on rents in this sector.”

Looking ahead, UK occupancy costs are expected to grow by an average of 1.8% over the next five years.