Birmingham Office Market Faces Availability Squeeze
The availability of office space in Birmingham has again been called into question, with data from commercial property consultants Cushman & Wakefield suggesting that the City faces a shortage of Grade A Office Space going forward.
Driven by a diminishing supply of premium office space and a lack of future developments, the Birmingham Office Market reportedly has just 700,000 sq. ft. of ΓÇÿGrade AΓÇÖ space left across the City Centre ΓÇô a situation which the commercial agent believes could become increasingly strained as prime offices have continued to attract tenants despite the pressures facing the economy.
Speaking to TheBusinessDesk.com, Scott Rutherford of the firmΓÇÖs Birmingham office explained:
ΓÇ£We believe that tenants will soon be disappointed in their ability to dictate terms to the same degree and select their first choice accommodation.ΓÇ¥
ΓÇ£We foresee in the short term a lack of supply of large floorplates starting to emerge, and the choice for occupiers diminishing.ΓÇ¥
While the higher grade space across Birmingham has continued to attract tenants, the report suggests that the uptake in lower grade space has diminished ΓÇô resulting in the first quarter of 2011 recording a 7.4% decrease in the overall number of deals being completed when compared to the 5 year average.
ΓÇ£At 101,565 sq ft this was the lowest quarter one return in the last five years, down from a peak of 183,348 sq ft in 2010,ΓÇ¥ said Mr Rutherford.
The report from Cushman & Wakefield also shows a reduction in the number of active enquiries being received during Q1, a trend which was also reflected in the Serviced Office Market, with the Birmingham City Centre Research* conducted by officebroker.com also highlighting a reduction in the number of enquiries coming into the market during this period.
*officebroker.com is the UKΓÇÖs leading independent broker to the serviced office industry. Research on regional and city centre activity is produced and published each quarter as part of the Serviced Office Review Series. Access to this research is free and available by visiting the Stats & Facts section of our website.