KWB’s Birmingham office market research in Q2 2023 shows that transactions were double that of the previous quarter.
This quarter saw a total take-up of 177,665 sq ft across 36 transactions, showing the city is performing close to its long-term average.
The top five deals in Q2 were all over 10,000 sq ft, together totalling 107,041 sq ft. Leading with large deals, serviced office and education occupiers represented four of the five transactions.
Topping the charts
The largest letting saw serviced office operator, Re-Defined, take 36,343 sq ft at Louisa Ryland House, leaving no remaining space at the recently refurbished building.
The second largest letting was to Arden University, securing 22,924 sq ft over three floors at Crossways on Great Charles Street.
In a very close third place, government organisation UK Curriculum and Accreditation Body (UKCAB) took 21,500 sq ft at 54 Hagley Road.
Continuing the trend
This quarter represented one of the most active on record for smaller deals, with the increase in lettings centred around transactions below 5,000 sq ft.
One of the most notable smaller deals involved high profile bank Handelsbanken, taking 3,855 sq ft at 103 Colmore Row. The letting represented the smallest letting at the property so far.
Elsewhere, in the city’s fringe areas, Q2 saw seven lettings in Edgbaston, including the relocation of the Greater Birmingham Chambers of Commerce to 54 Hagley Road – after a pronounced silence from these areas in recent quarters.
Hear from the experts
Malcolm Jones, Director of Office Agency at KWB, said: “It’s greatly encouraging to see the increased number of smaller deals taking place in the Birmingham office market this quarter. Such activity tends to be a reliable indicator of business and the prosperity of the city. From these transactions, we can see the Birmingham office market is holding up nicely.
“We’ve never seen as many education occupiers as we do now. Just this week, another major deal saw London-based Planet Education Networks acquire York House on the corner of Newhall Street and Great Charles Street, to create a new education campus.
“It appears landlords and agents have identified a gap in the market – addressing the continued demand for remote learning. We expect this to continue into the coming quarters.”
Large space in the pipeline
Malcolm continued: “As for much-needed, high quality stock, I’m pleased to say that major office refurbishment projects have been announced. These include 19 Cornwall Street, which offers 139,000 sq ft across seven floors and Arca, formerly St Phillips Point, offering 65,000 sq ft.”
For more insights from the Birmingham office market Q2 research, or to discuss your office space requirements, please contact Malcom Jones at firstname.lastname@example.org, or on 0121 233 2330.