Office market research Birmingham and Solihull: KWB releases latest in-depth 2015 review and 2016 outlook
Office market research Birmingham and Solihull
The office market experienced a landmark year in 2015, achieving almost 1.5 million sq ft in office sales and lettings in Birmingham city centre, Solihull and the M42 corridor. KWB takes an in-depth look into the office market research for Birmingham and Solihull, incorporating insider knowledge and analysis of office availability and investment purchases.
Birmingham city centre
970,458 sq ft – a record year for office transactions within Birmingham city centre. The second city is experiencing its highest level of property and infrastructure development in 13 years.
Key transactions
- HSBC – 212,000 sq ft
- Advanced Computer Software – 45,045 sq ft
- Extra Energy Supply – 34,397 sq ft
- Jacobs Engineering Group – 19,284 sq ft
For the full list, see our office market research Birmingham and Solihull.
HS2 stimulating demand
The letting of 19,284 sq ft to Jacobs Engineering Group at 2 Colmore Square is the first major transaction in support of HS2’s occupation of Two Snowhill in 2014. We believe there are plenty more to come.
Inward investment
Inward investment, such as HSBC and Advanced Computer Software, has brought new money and the promise of new jobs to the city. We’ve examined what is drawing new, larger companies in – and what to expect in the future… see more.
Office space availability 2016
There is currently c. 750,000 sq ft of Grade A and Grade A/B available, representing 4% of total stock. Of this supply, only 144,000 sq ft is brand new Grade A space. With the 10 year annual average take-up totalling 705,000 sq ft, we take a look at what investors and developers have in the pipeline to meet demand… see more.
Investment transactions
Investment in Birmingham city centre came to a record close at the end of 2015, with Legal & General being a particularly active office space investor. We evaluate 2015’s investments in office space in Birmingham city centre, and the yields these purchases are delivering. See more
“The city’s substantial investment in infrastructure, such as the £750m redevelopment of New Street Station and opening of Grand Central, coupled with the value to be found in the office market, meant that Birmingham’s office market had a fantastic 2015.”
Waheed Nazir, Strategic Director of Birmingham City Council.
For his full contribution to our research… click here.
Solihull and the M42 corridor
465,275 sq ft – another great year for Birmingham’s out-of-town office market, with several substantial and significant transactions, most notably, 114,000 sq ft pre-let to Interserve and Changan Automotive’s acquisition of a part-investment office complex, totalling 80,000 sq ft.
Key transactions
- Interserve – acquired 114,000 sq ft at International House
- Changan – acquired 80,000 sq ft at Parkside Court, Birmingham Business Park
- National Grid/Xoserve – leased 46,000 sq ft at Lansdowne Gate, Solihull town centre
- BT – acquired 20,000 sq ft at 4520 Birmingham Business Park
- Ryder Trucks – took 17,000 sq ft at 2610 The Crescent, Birmingham Business Park
For the full list, see our office market research Birmingham and Solihull.
Inward investment
Changan Automotive, the Chinese automobile group, completed the acquisition of 80,000 sq ft at Parkside, Birmingham Business Park… see more
The JLR effect
JLR, now the largest car manufacturer in the UK, and the automotive industry as a whole, continues to have a positive effect on the region’s economy and real estate market... see more
Office space availability
With only 10,000 sq ft of brand new Grade A space remaining, and no speculative development on the horizon, an obvious shortage of high quality space exists. Demand remains strong and landlords are planning comprehensive refurbishments. We’ve collated the new stock coming to market… see more.
Rental levels
Rental levels along the M42 corridor hit the high teens in 2015, on stock that achieved mid-teens throughout the recession. We’ve made our predictions on what changes to expect from rents on offices in Solihull and the M42 corridor… see more
Investment transactions
Investment activity in the out-of-town office market has been strong, with the most notable transaction being the purchase of Birmingham Business Park by Blackrock for £85 million. We evaluate what is stimulating this investment activity, the Solihull office space investments that have been made in 2015, and the yields these purchases are delivering… see more.
“Last year, transactions totalled over 450,000 sq ft – representing 3,200 Solihull jobs. Solihull continues to draw international corporate interest – with a quarter of 2015 transactions resulting from Foreign Direct Investment.”
Anne Brereton, Director of Managed Growth, Solihull Metropolitan Borough Council.
For her full contribution to our research,.. click here.
See full details of all transactions, please click below:
Transactions for office space in Birmingham city centre and Edgbaston
Transactions for office space in Solihull and M42 corridor
For more information on office market research Birmingham and Solihull, please contact Nigel Tripp on 0121 212 5981 or email ntripp@kwboffice.com.
