The Birmingham office market has enjoyed its strongest quarter of the year, topped by a landmark letting to investment banking firm Goldman Sachs.
Our Birmingham Office Market Research – Q3 2022 report shows a total of 189,492 sq ft office space was transacted in July, August and September, compared to 117,599 sq ft in Q2 and 175,261 sq ft in Q1.
Goldman Sachs’ long-term lease agreement on 110,000 sq ft at One Centenary Way accounts for 58% of the Q3 Birmingham office market total and 23% of the year-to-date.
However, unlike previous years, there was only one other transaction over 10,000 sq ft. This involved gaming company Facepunch Studios, who signed up to a 10-year lease for the entire eighth floor of 103 Colmore Row, spanning 12,178 sq ft.
Other smaller transactions included commercial property agents Colliers leasing 9,215 sq ft at 103 Colmore Row to house its 125-strong team, and EU Automation securing 5,000 sq ft at the recently refurbished 10 Temple Street.
Outside the city core, iCentrum, Innovation Birmingham Science Park, secured six occupiers specialising in design, TMT and marketing totalling 10,536 sq ft.
Malcolm Jones, Head of Office Agency at KWB, said: “This has been the best quarter of the year, beating the 10-year Q3 average of 177,792 sq ft.
“However, where we normally see a flurry of deals in the bracket of 10,000-15,000 sq ft, there are few readily available high-quality options currently available in the city centre core, where most of the major office transactions have taken place over the past five years.
“Much of Birmingham’s brand-new office space, either built or currently coming out of the ground, has now been secured by occupiers. Meanwhile, locations further out such as Brindleyplace and fringe areas like Edgbaston and Digbeth have been quieter.
“The future is bright, however, with plenty of office space transactions coming down the line. It’s been announced that the BBC will relocate from its offices in the Mailbox into the former Typhoo factory in Digbeth.
“The Government is also set to announce the latest in a long line of major office space acquisitions in Birmingham city centre.”
KWB is the leading independent firm of commercial property consultants for offices in Birmingham and the West Midlands. If you are looking for a new office or have vacant space to market, please contact Malcolm Jones on 0121 233 2330 or email firstname.lastname@example.org.