Q2 Birmingham Office Market Lettings Double As Education Sector Growth Continues
27 July 2023
Q2 transactions in Birmingham’s office market were double that of the previous quarter, according to KWB’s latest market research.
The period between the start of April and end of June saw take-up of 177,665 sq ft across 36 transactions, showing the city is performing close to its long-term average.
The top five deals in Q2 were all over 10,000 sq ft and together they totalled 107,041sq ft, with serviced office and education representing four of the five transactions.
The largest letting saw serviced office operator Re-Defined take 36,343 sq ft at Louisa Ryland House, leaving no remaining space at the refurbished building.
The second largest letting was to Arden University – the UK’s fastest growing university – which secured 22,924 sq ft over three floors at Crossways on Great Charles Street.
In a very close third place, government organisation UK Curriculum and Accreditation Body (UKCAB) took 21,500 sq ft at 54 Hagley Road.
The increase in lettings for Q2 was centred around deals below 5,000 sq ft. Fordeals below 3,000 sq ft, the quarter represents one of the most active on record for the Birmingham office market.
One of the most notable of these smaller deals involved high profile bank Handelsbanken, which took 3,855sq ft at 103 Colmore Row, representing thesmallest transaction to take place at the property so far.
After a pronounced silence from offices in the city’s fringe areas, Q2 saw seven lettings in Edgbaston, including the relocation of the Greater Birmingham Chambers of Commerce to 54 Hagley Road.
Malcolm Jones, head of office agency at KWB, said: “It’s been greatly encouraging to see the increased number of smaller deals taking place in the Birmingham office market this quarter. Such activity tends to be a reliable indicator of business and the prosperity of the city. From these transactions, we can see the Birmingham officemarket is holding up nicely.
“We haven’t ever seen as many education occupiers as we do now. Just this week another major deal saw London-based Planet Education Networks acquire York House on the corner of Newhall Street and Great Charles Street to create an education campus. It appears landlords and agents have identified a gap in the market to assist the growth in demand for remote learning and we expect this to continue into the coming quarters.
“As for much-needed, high quality stock, I’m pleased to say major office refurbishment projects have been announced, including 19 Cornwall Street, which offers 139,000 sq ft across seven floors and Arca, formerly St Phillips Point, which offers 65,000 sq ft.”
For more details or to discuss your office space requirements, please contact Malcom Jones: mjones@kwboffice.com / 0121 233 2330.
