Strong Q2 2024 for Solihull and M42 office market

A strong Q2 Solihull office market 2024 has exceeded both the five- and ten-year averages this quarter, with an impressive take-up of 75,140 sq ft of office space between April and June. This marks the best performing quarter in Solihull and the M42 corridor in over two years.

According to KWB’s Q2 Solihull office market review, there were eight transactions in total, including three deals over 10,000 sq ft.

In the largest deal of the quarter, ABP Food Group (Beef) purchased 25,412 sq ft at Vienna House, within Birmingham International Park. Other significant transactions included a 17,631 sq ft office letting to Fujitsu at Blake House, Hatchford Way on the A45, and 10,139 sq ft let to Allianz at Ingenuity House, located next to Birmingham Airport and International Railway Station.

Malcolm Jones, Director of Office Agency at KWB, said: “Following an underwhelming start to the year, there has been a spike in deals leading to a very positive quarter for the M42 and Solihull office market and the highest take-up since Q1 2022.

“The market should continue to thrive as we move into the second half of 2024, thanks to strong progress with projects like the HS2 Interchange station near Solihull and the Mell Square redevelopment. Both of these will attract more businesses to the area.”

Following a strong Q2 Solihull office market take-up, figures for the first half of 2024 were 38% above the five-year average and, in the quarter itself, they were 2.4% up on the ten-year average. This indicates that the market is making solid progress since the dip experienced due to the pandemic.

In terms of the number of deals, the best performing sectors in Q2 were professional services and TMT (technology, media and telecoms). However, the largest transaction was from the manufacturing sector, making it the best performing sector by size.

Malcolm continued: “While smaller office deals continue to dominate across the M42 and Solihull market, demand for medium and larger office space is increasing. We are already receiving enquiries for Grade A office space at Westgate, which is set to be the flagship office space in the town centre and will help to further bolster Solihull’s position as a thriving business hub.

“With a few key deals expected to close before the end of the year, we’re predicting that the M42 and Solihull office market will continue to go from strength to strength.”

To date, 47% of deals in 2024 have been for office space between 5,001 sq ft and 20,000 sq ft, compared to just 15% across the whole of 2023.

See the full Solihull and the M42 office market review report here.

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

Malcolm Jones

Phone

Email mjones@kwboffice.com

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