Edgbaston offices secured 21% of the city’s Q1 2016 total square footage in KWB’s office market research for Birmingham city centre and Solihull and the M42 corridor. With 59,261 sq ft of sales and lettings across 8 of the city’s 36 deals – it’s considerably higher than last year’s total of 14%.
In recent years, many Edgbaston offices have been converted into residential space – owing largely to the rise of the area’s residential appeal. However, owing to several factors, sales and lettings for office space appear to be on the up for the Birmingham fringe location.
In what was Birmingham’s third largest letting in Q1, property professional, DAC Beachcroft took 40,045 sq ft at Tricorn House, a letting that dominated Edgbaston’s share. Their relocation from Brindleyplace gives Edgbaston both a huge shot in the arm and its largest transaction for many a year. Following the DAC Beachcroft letting, Extra Energy’s 34,000 sq ft at 54 Hagley Road six months ago, and the number of smaller Q1 2016 Edgbaston transactions, high quality, Edgbaston offices are disappearing fast.
Q1 2016 transactions for Edgbaston offices
|Company||Edgbaston offices||Office space (sq ft)|
|DAC Beachcroft||Tricorn House||40,045|
|Cento Micro Systems||Hagley Court||3,625|
|WYG||54 Hagley Road||2,715|
|Alliance Surgical||54 Hagley Road||2,196|
|B2BE Ltd||Lyndon House||2,102|
|Time Etc||Lyndon House||2,100|
|RMY Clements||Lyndon House||2,100|
|QGreen||146 Hagley Road||400|
Currently, and historically, Edgbaston offices offer lower levels of rent than Birmingham city core, whilst still providing great access to amenities and communication links. As demand outstrips readily available supply in the city centre – occupiers are finding Edgbaston offices to be a city core alternative to Birmingham city centre office space that’s too good to ignore.
Tim Abbots, Director of Estates for Calthorpe Estates, said: “With the current developments taking place in Edgbaston Village adding amenity to the area, and the planned links to the city transport network by Centro and Metro, Edgbaston is seeing a resurgence in popularity as an office location in a less densely developed, green environment.
“Within the immediate vicinity of Edgbaston Village there is a strong commercial quarter, which includes over 3m sq ft of commercial office space. It is also home to Edgbaston Medical Quarter, with many world-class technology companies and leading medical practitioners.”
The local amenities have been bolstered just last month with the opening of the first Park Regis Hotel in Europe, a redevelopment of the old Auchinleck House, overlooking Five Ways. The international hotel represents a £50 million investment, consisting of 253 rooms, including a giant ‘presidential’ suite as well as two restaurants, a gin bar, a saki bar, spa, gym and executive meeting rooms. The hotel’s Japanese pan Asian restaurant Rofuto, which offers views rivalling The Cube’s Marco Pierre White restaurant, is Birmingham’s second rooftop restaurant and bar.
KWB Director, Mark Robinson, said: “It’s great to see the market for Edgbaston offices spring into life, in recent months. The location has gradually established its competitive differential, and that has made it sustainable. When taking into account the current high demand / low supply conundrum of Birmingham city centre, Edgbaston office space is ripe for the picking.
“Should popularity here continue to grow, we could see a slowing of the existing trend of Edgbaston office space being converted to residential, and this could even result in a rise in future headline office rents for the area.”
For more information, please contact Mark Robinson on 0121 212 5994 or email firstname.lastname@example.org.