Birmingham office market driven by smaller deals – JLL
In the office lease market, Birmingham is said to be driven by smaller deals over the next year, according to research by commercial property experts Jones Lang LaSalle.
Speaking at a property market seminar in Birmingham recently, Jonathan Fear, head of JLL’s national office agency team in the city, said that the sub-10,000 sq ft market is currently dominating take-up performance.
Take-up in Birmingham is said to be 73% up in Q3 compared to the first half, although this was boosted by a single deal at Birmingham Science Park. Without this deal, take up would reportedly be 17% below the first year average over the first three quarters.
According to Property Week, Fear said:
“Office take-up in Birmingham city centre in quarter 3 was focused in the sub-10,000 sq ft market which generated a comparable volume of activity to the previous three years. As such, we anticipate that this market churn will continue to be the primary driver of deals in the city over the next year.”
Fear also added that there has been an increase in occupier demand over recent weeks.
However in the serviced office market, demand and take-up of office space in Birmingham is currently underperforming against last year’s figures. In a report by officebroker.com that covers the first three quarters of 2009, enquiries for serviced offices in Birmingham were -6% down overall when compared to the same period in 2008.
Take-up was also down in the first three quarters of 2009, this time by -14%.
This suggests that the serviced office space market continues to struggle against the recession. However for the city centre (postcodes B1 ΓÇô B4), enquiries in Q3 are on a par with the same period last year, which may help to boost the performance of Birmingham for Q4 onwards.
Find out more in officebroker.com’s report: Birmingham serviced office space ΓÇô market review.
For details of serviced office space to rent in Birmingham, search online at officebroker.com.