One Million Reasons To Be Cheerful: Birmingham's Record Office Take-Up
Central Birmingham office take-up topped 1M SF in 2017 for the first time ever — a 45% increase on 2016.
The five-year average for 2013-2017 is now 809K SF, according to the Birmingham Office Agents Forum. Performance in 2017 exceeded the most recent peak in 2015 when transactions totalled 970K SF.
The record-breaking 2017 total came after a barnstorming final quarter which accounted for more than a third of the take-up, and 49 of the 130 deals recorded during the last 12 months.
The final-quarter total was boosted by PwC's decision to add 60K to its floor space at Hermes' Paradise scheme, and serviced office provider Regus taking 76K SF at AG Dunedin’s Crossways building, Great Charles Street.
Further large-scale take-up by serviced office providers is expected to drive Birmingham office rents to £35/SF by early next year.
However, the lesson from London — where the serviced office business has boomed — suggests it can seriously destabilise the office scene.
“Office take-up was boosted by the emergence of HS2-related demand together with the government committing to the largest pre-let seen in the city for a decade," JLL Director of Office Agency Jonathan Carmalt said. "In addition, key larger transactions were concluded in the professional services and the serviced office sectors."