M42 Supply Klaxon Can 't Be Ignored
Office take-up of 256K SF during 2019 leaves the M42 office market in urgent need of more Grade A office development.
So said the data of M42 broker KWB, which showed that a staggering 77% of all M42 corridor office deals were agreed at the Birmingham Business Park.
The park's years of success means that its supply of available office stock has dwindled to a record low of 3.9%.
“There were too many lettings at that location to list during 2019, but one of the stand-out deals was GKN taking just over 13K SF at 2100 The Crescent, where the landlord was the global investment manager BlackRock, which is the biggest landlord on the park,” KWB Head of Office Agency Malcolm Jones said.
More than 150 companies and organisations are now based at the 148-acre park.
“Developers are considering proposals to bring forward Grade A space on a speculative basis, at J6 of the M42, which would be great news," Jones said. "Bromsgrove and Redditch also saw several deals during Q4, and more are expected in early 2020.”
“Such new product will be absolutely vital for the health of the economy, because the corridor between Solihull, the NEC, Birmingham Airport and the West Coast mainline station, has been the region's most powerful single driving force for years — and what happens during 2020 will define its future impact.”
The data comes as specialist chairmaker Evac+Chair signs up for 38K SF at IM Properties’ 122-acre Blythe Valley Park near junction 4 of the M42 motorway. It will take space at the five-unit Connexion campus.