Two Snowhill Office Scheme Back On?
The stalled Ballymore office space scheme at Two Snowhill in Birmingham City Centre, could finally be about to get back on track, with the US based property firm Hines emerging as a frontrunner in the battle to take control of the city Centre office scheme.
Reported in the Commercial Property section of the Birmingham Post, the site, which will provide over 300,000 sq. ft. of office space to the city once if completed, stalled during the credit crunch as a result of its previous backer Anglo Irish pulling-out .
Having stood as a tomb-like concrete core amongst the cityΓÇÖs skyline for over two years now, the acquisition of the office scheme by Hines would add to the other office interests held by the company within Birmingham, such as their recent purchase of a major chunk of the BrindleyPlace development.
With phase one of the project already completed and occupied by the likes of KMPG and Barclays Wealth, the second phase is reported on offer for around ┬ú135m and would offer potential developers a 184,000 sq. ft. pre-let tenant in the form of law firm Wragge & Co ΓÇô however the firm are believed to have the option of walking away from the office space if it is not completed by early 2013.
While the delayed arrival of Two Snowhill would no-doubt supply a boost to the commercial office market in Birmingham, following mixed reports from commercial property agents during 2010, the limited supply of current and future grade ΓÇÿAΓÇÖ office space within the city could still prove a stumbling block for the city as it seeks to compete with other regional cities as a suitable office locations for national and international firms.
In the absence of prime commercial property within Birmingham, the providers of serviced office space within the city could prove an attractive and practical solution in filling the gap left in the development pipe-line by as a result of the credit crunch.
Already located in some of BirminghamΓÇÖs most desirable business addresses, and despite moving toward being a long-term solution rather than a short-term stop-gap, serviced offices could offer the ideal in-road to businesses wishing to establish themselves in Birmingham before they consider taking on the heavy burden of a long-term commercial leases ΓÇô a option which appears to hold less-and-less appeal in the wake of the financial downturn.