Bumper Q4 Birmingham office market and 2023 annual review

The Q4 Birmingham office market research highlights the best quarter of 2023, with take-up totalling 240,274 sq ft in 37 deals, according to KWB.

Law firm Mills & Reeve topped the quarter by taking 32,088 sq ft at One Centenary Way in Paradise Birmingham.

The second and third largest transactions saw Global Banking School (GBS) take 29,383 sq ft at Norfolk House and Crown Prosecution Service (CPS) take 27,589 sq ft at 9 Colmore Row.

In the 2023 and Q4 Birmingham office market report, KWB says total take-up in 2023 was 702,993 sq ft across 109 deals.

It beat the five year annual average of 670,677 sq ft and it’s the first time Birmingham has passed the 700,000 sq ft mark since 2019, when take-up reached 780,095 sq ft. Average take-up for the last ten years was 749,111 sq ft.

Deals in the 20,000-50,000 sq ft bracket accounted for almost 40% of total 2023 take-up and transactions in education and government sectors accounted for over 50%.

The largest deal of 2023 saw Lloyds Bank take 59,896 sq ft of managed office space at The Foundry, 6 Brindleyplace. The transaction – which also represented the biggest flexible office letting outside London in 2023 – saw the bank relocate 2,260 staff to enable the refurbishment of its headquarters at 125 Colmore Row. The second largest deal saw QA Higher Education take 45,180 sq ft at Louisa Ryland House on Newhall Street.

Malcolm Jones, Director of Office Agency at KWB said: “Birmingham’s office market demonstrated continued resilience in 2023, with annual take-up climbing 10,293 sq ft from 2022.

“Q4’s largest transaction at One Centenary Way for Mills & Reeve highlights the ‘flight to quality’ trend as organisations look to enhance their presence in thriving city-centre locations.

“There are a number of new buildings and developments on the horizon across the city that will answer growing demand from occupiers for this high quality, flexible space. Three Chamberlain Square will add a further 189,000 sq ft to the Paradise scheme and is due for completion in 2025. Plans have been submitted to Birmingham City Council for the partial demolition, refurbishment and extension of prominent office block, Colmore Gate. Construction is also underway on the 30-storey Beorma Tower, providing new-build office space, available from 7,000-153,000 sq ft, across 12 floors.

“The in-demand Birmingham city centre office market also presents the ideal opportunity for landlords to refurbish existing properties.”

For more details on KWB’s office market research or landlord or occupier advice, please contact:

Malcolm Jones

Phone

Email mjones@kwboffice.com

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