KWB Birmingham commercial property agents have successfully secured an increase of 15% in the average rent at a Birmingham city centre office building during its recent rent review.
Acting on behalf of landlord West Midlands Pension Fund, KWB Head of Valuation and RICS registered valuer, Martin Cook, negotiated an average rental uplift of 15% with tenants at 35 Newhall Street in Birmingham’s central business district.
KWB’s latest Birmingham office market research cites the lack of supply of office space, particularly in the middle of the market, combined with the healthy level of demand for offices, as the reason that rents in this sector of the market are increasing.
Martin Cook achieved the increase in rent through a combination of rent review and lease re-gears at the 53,587 sq ft five-storey, multi-let, office building.
Martin Cook said: “The increase we achieved reflects the change in the Birmingham office market, where an increasing shortage of high quality office space has driven up rents. But, it also reflects the quality of the office space at 35 Newhall Street, situated in a prominent and prestigious office building at the junction of Newhall Street and Cornwall Street, in the heart of the Colmore Business District, where occupiers want to be located.
“We are presently advising many commercial property landlords and tenants undergoing rent reviews in Birmingham city centre, based on an upwards change in office rents over the last few years.”
KWB recommends any landlords with upcoming lease events, such as rent reviews or lease renewals, to get in touch. KWB can ensure that a new rental level is agreed that will better reflect the market value of the space, whilst also retaining occupiers with a fair rate of increase.
For information on rent reviews, lease renewals, the current rental values of your property and further information on any of KWB’s commercial property services, contact Martin Cook on 0121 233 2330 or email firstname.lastname@example.org.