Birmingham needs more Grade A office stock, says JLL

JONES Lang LaSalle says a lack of Grade A office instructions and stock could hamper a further upturn in the central Birmingham office market.

The property consultancy has been involved in more than half of the 336,937 sq ft transacted in Birmingham city centre this year – and 23% of the deals – but fears a lack of supply at the top end is becoming an issue.

Jon Carmalt, head of office agency at JLL in Birmingham, said: “We are now almost experiencing the pain of our own success as we have just a handful of Grade A quality office suites available to let.”

Kelvin Craddock, associate director in the team added: “The figures suggest the office market is turning a corner and certainly enquiry levels are on the increase.  However if we don’t get some new office developments mobilised in Birmingham soon, occupiers are going to be running very short on choice in the city.

“We predict that by 2015/16 there isn’t going to be much quality office stock of note available in the city if the trend for lack of development continues. Whilst this is 18-30 months away, we need to start addressing the shortage now and working with all the interested parties to promote greater growth in the office sector.

“Our saving grace is that we have a very proactive Local Enterprise Partnership (LEP) helping to facilitate the early commencement of major schemes and Birmingham is attracting greater attention through HS2 and the £600m redevelopment of New Street station.

“This will hopefully provide the stimulus necessary to attract more occupiers into the city.”