Bumper Q4 Takes Birmingham's 2018 Office Investment Tally to £800M
The first three quarters of the year saw £357M worth of deals, 19% above the 10-year quarterly average of £300M, Savills data shows. Savills expect the final quarter to deliver more than half the £800M projected total.
The Prime yield for the best space is 4.75%, just 75 basis points above the City of London.
Data from Savills suggests that 2018 will be the strongest year yet for investment in Birmingham offices, beating the £790M recorded in 2015. Their figures include a number of deals yet to complete but expected to do so before Dec. 31.
Key office investment deals in Birmingham so far in 2018 include: The European Cities Fund acquiring 55 Colmore Row for £98M and The Railways Pension Trusties purchase of 2 Colmore Square for £95M.
"As we move into 2019, investors will inevitably be cautious with regards to the wider economic picture around Brexit. However, there remains a robust level of capital waiting to be deployed," Savills Birmingham Investment Director Andrew Bull said. "In addition, the predicted tightening in the occupational market, rising overseas investor interest and growing shortage of openly marketed stock is likely to hold prime yields firm."