Solihull Loses Out To Birmingham As Developers Ignore The M42 Market

The Environment Agency is to move from Solihull to Birmingham, as the M42 town endures a sluggish first half.

The Environment Agency has signed up for 27K SF at the Canal & River Trust's Acqua House, Lionel Street.

The 40K SF block was recently refurbished, and rents are £16.50/SF.

Under the 10-year lease, the Environment Agency will relocate from offices in Solihull town centre, with the move driven by the need to be close to the new government hub at Arena Central and the pending conversion of its former office building to a residential scheme.

GVA advised the agency.

The move comes as data from agency KWB shows Solihull achieved 55K SF of office deals in the second quarter. KWB described the market as "somewhat lacklustre" and blames a lack of supply for the malaise. Half-year take-up is 44% of the six-year average.

There is scant speculative development or refurbishment — particularly compared to Birmingham — and KWB said the lack of supply is likely to be exacerbated by a clutch of five-year breaks on leases agreed in 2014-2015, the first strong year of recovery after the recession.

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