Birmingham Office Market Faces Shortage of Grade ΓÇÿAΓÇÖ Options
Businesses seeking office space in Birmingham could face a shortage of options when it comes to securing ΓÇÿstatementΓÇÖ offices according to commercial property agents Cushman & Wakefield.
Reported in the Commercial Property section of todayΓÇÖs Birmingham Post, the end of the current development cycle and the lack of future speculative office development the city is expected to generate a shortage, with the much maligned Cube Development being the last large-scale building currently under development that would be able to offer grade ΓÇÿAΓÇÖ office space to tenants with larger requirements.
But with the recent launch of Birmingham City CouncilΓÇÖs Big City Plan ΓÇô the lack of office space opportunities for companies with larger demands could seriously hinder the cityΓÇÖs ambitions of attracting big names as potential investors and tenants within the UKΓÇÖs second city.
Speaking to the Birmingham Post, Head of Business for Cushman & Wakefield in Birmingham explained:
ΓÇ£There is no disguising that overall supply levels remain high and so it is still a tenant friendly market.ΓÇ¥
ΓÇ£Grade A space is however declining at a quicker rate than total supply levels, and there is a shortage of large floorplates emerging, which will gradually diminish the choice for occupiers.ΓÇ¥
The situation could see some improvement if the static Two Snow Hill scheme, which is located opposite the Orega business centre in Birmingham who hosted Jo and I last week following the our office fire, finally secures funding following the office scheme grinding to a halt at the outset of the financial down turn.
With a 20%* increase in enquiries also reported within the cityΓÇÖs serviced office space market*, it is not just high-grade commercial offices that may be facing a shortage.
While the serviced office market could also be considered ΓÇ£tenant friendlyΓÇ¥ at present ΓÇô due mainly to average workstation prices in 2010 remaining below 2009 prices for the year-to-date (2010 year-to-date price ┬ú255.00, 2009 year-to-date price ┬ú235.00), the continued influx of serviced office space enquiries could lead to increased uptake and bring about increased competition for the prime serviced offices located in Birmingham City Centre.
*Source officebroker.com,: B Postcode enquiry numbers, Jan-Oct 2009 compared to Jan-Oct 2010