M42 office take-up outstrips Birmingham city centre
OFFICE take-up along the M42 is outpacing take-up in Birmingham city centre for the first time since official figures were collated in 2005.
In the first half of 2012, 401,691 sq ft of office space was let along the M42 corridor, compared with just 147,654 sq ft in Birmingham’s central office core.
The half-year figures for the M42 have already surpassed 2011’s total take -up of 198,337 sq ft.
According to Douglas Bonham, head of out of town offices at the Birmingham office of property consultancy Colliers International, the out of town office market is becoming the ‘darling’ rather than the ‘poor relation’ of the region’s office sector.
He said: “There’s no doubt that in recent years the headline grabbing deals have been done in the city centre. However, while the city centre market is now stuttering, out of town take-up is powering ahead.”
And it’s not just the M42 that has seen a surge in activity.
The rising fortunes of Jaguar Land Rover and Rolls Royce have boosted take-up in the Coventry and Warwickshire area, from both the car makers and their supply chain.
But supply is beginning to tighten in certain locations, for example along the M5, from Worcester to Walsall, there are just three buildings in excess of 10,000 sq ft remaining. In Bromsgrove, there is nothing over 7,500 sq ft and in Stratford-Upon-Avon just one good quality building of any size is still available.
Bonham said: “What we are now beginning to see is tenants being forced to compromise and look further afield to find the right property, particularly where Grade A accommodation is being sought.”
