Contrasting Results for the Birmingham Office Market
In direct contrast to reports from DTZ that the letting of office space in Birmingham had fallen by half in the second quarter of 2010, rival commercial property agents Savills have reported a 63% increase in office space take-up between April ΓÇô June 2010.
Having recorded a total of 496,819 sq. ft. of office space being let in Central Birmingham through Savills during Q2 10, the core office markets that surround Colmore Row and Brindleyplace appear to account for the lionΓÇÖs-share of activity ΓÇô unsurprising considering the string of deals reported in the last few months.
With over half of these office lettings being for grade A office space, it would appear that the flurry of new deals and relocations are a sign that occupiers are once again finding the money to invest in new office space – or simply acting now in order to take advantage of the low prices available within the market.
But with the likes of Drivers Jonas Deloitte predicting a continued decline in Birmingham office rents and tenant demand until at least the end of 2010, will the reported upturn of Savills or the downturn of DTZ for Birmingham offices prove to be the more accurate reflection of the remaining months of 2010?