DTZ Report Subdued Office Market in Birmingham
DTZ have reported a significant drop in Grade A office transactions in Birmingham during the second quarter of 2010, with tenants hesitant to commit during the uncertainty surrounding the May General Election and subsequent Emergency Budget being highlighted as driving factors.
In a trend which DTZ said was reflected in the office space markets across most city centres of the UK during this period, the property firm also suggested that the subdued leasing activity was likely to continue, with businesses and the public sector continuing to implement efficiency plans to minimise costs in the aftermath of the financial downturn.
For those businesses that do however find themselves in a position to pursue new office space however, it would appear that now is the time to do it ΓÇô as David Tonks, Head of Office Agency at DTZ in Birmingham explained to the Birmingham Post:
ΓÇ£The current market does present occupiers with the opportunity to acquire high quality space on competitive, flexible termsΓÇ¥ explained Tonks, before explaining that; ΓÇ£Whilst occupiers from all sectors recognise the opportunity, current evidence in the market suggests that the combined effect of the election, the Budget, the autumn spending review and general economic uncertainty has limited the scale of active demand coming to the market.ΓÇ¥
Despite the subdued office market of Q2 and ΓÇ£softenedΓÇ¥ property market which has followed the property rally seen in the past year, DTZ still maintains that the underlying picture is more positive – with the firm suggesting that a broad range of companies are actively reviewing their office accommodation and are willing to capitilise on the current market where possible.
Martin Davis, head of UK markets research at DTZ, said the market still had much room to improve but that ΓÇ£We expect the regional office market to continue to be subdued over the medium term. The investment market is likely to pick up later in the year, as institutions look to spend allocations by the end of the year, thereby boosting transaction volumes.ΓÇ¥
As DTZ publish information on activity within the UKΓÇÖs commercial office property, officebroker.com are also publishing the Serviced Office Review Series, a collection of regional reports that track the changes in the UKΓÇÖs serviced office space market each quarter. The reports, which compare quarter-on-quarter activity alongside national and year-to-date activity within the serviced office market, can be downloaded for free from the Stats & Facts section of www.officebroker.com.