Boost for Birmingham office space market
A recent Market View report by CB Richard Ellis on Birmingham offices has shown some promising results from the investment sector. According to the research, the second quarter produced a “significant improvement” in attitudes towards commercial property investments in Birmingham.
“A raft of new buyers have emerged including syndicates, overseas and high net worth individuals, many of which have been net sellers over the last five years,” claims the report. “It is also evident that a number of funds have improved their liquidity levels and are now once again showing an appetite for reinvesting.”
While the investment market is expected to improve over the coming months, with a considerable increase at the start of 2010, the city is still suffering from low levels of take-up that are below the expected yearly average.
“Despite landlords offering extremely attractive lease terms, tenants are hesitant to incur the cost of relocating when substantial cost savings can be made by renegotiating terms with their existing landlord instead.”
But this is having a positive effect on businesses currently based within the UK’s second city, as they are reaping the benefits of low rents and favorable negotiations.
Positively for Birmingham, the report goes on to state that the city “now has a good range of premium quality buildings”, including many which are rated ‘Excellent’ or ‘Very Good’ according to BREEAM environmental standards.
This places Birmingham in a strong position, as more businesses are switching on to the benefits of greener buildings, and many will look to Birmingham’s excellent selection of readily available buildings at the point when the recession subsides.
Birmingham is one of the UK’s most popular cities for office space – take a look at our recent reports to find out more:
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