M42 and Solihull office market review Q3 2024

M42/Solihull office market Q3 2024 key transactions

On the heels of a strong second quarter, Q3 saw 9 transactions completed for a total of 60,649 sq ft. However, it is important to note that 29,129 sq ft of this is due to the largest deal of the year thus far, AIR’s letting to BNP Paribas Personal Finance.

This was the only deal to break the five-figure mark, with the majority of transactions lying in the 2-5,000 sq ft and 5-10,000 sq ft size brackets, each taking 25% of the overall take-up.

Key transactions in the M42/Solihull office market Q3 2024

AIR claims second deal for 2024 high

The newly refurbished, contemporary office space is proving popular, completing its second deal of 2024 in Q3. The initial AIR letting, supplying 11,001 sq ft to recruitment agency Robert Half, was the bright spot in an underwhelming Q1 for Solihull and the biggest deal of the year at that time.

However, AIR has now exceeded its own 2024 record with a new 29,129 sq ft deal in Q3. This year-high transaction is one of four town centre deals this quarter, providing 60% of total take-up for Q3.

Stephen Hunt, Chief Executive of the new AIR Solihull occupiers, BNP Paribas Personal Finance, said, “Not only will this space help us to continue to contribute to the local economy, it will also ensure that BNP Paribas Personal Finance UK has a modern, flexible and efficient working environment that will support our colleagues, particularly as we adopt a more agile way of working.”

Q3 looks to re-establish town centre

While AIR clearly completed the most impactful deal, the quarter’s other town centre lettings are still noteworthy. Two deals took place at Radcliffe House, with Flutter taking 1,054 sq ft and Oracle occupying 2,957 sq ft. Majestic Wines, meanwhile, took 3,454 sq ft at 39 Dominion Court.

These four town centre deals led to gaining a 60% share of the quarter’s total square footage, as well as a 21% share of the overall total take-up for 2024 thus far. This is particularly positive news for Solihull town centre, having contributed just 2% and 1% of the 2023 and 2022 take-up totals, respectively.

As well as square footage, the number of deals transpiring in the town centre is also improving. With 5 deals made in 2024 currently, for a 19% share, the year is already the strongest since 2020 when 10 deals were made for a share of 29%.

New refurbs key to Solihull growth?

AIR’s two major deals in Solihull show that there is clearly demand for premium-quality workspace within the area. Having only been available for occupancy since the start of 2024, the building has already let 40,130 sq ft, 23% of the total take-up for the M42 and Solihull office market in Q1-3 2024.

Offices that boast the kind of refurbishments that were undertaken at AIR Solihull are most popular in major cities such as London, Manchester and Birmingham. The addition of gyms, green terraces and open spaces, and other lifestyle-enhancing features has proved attractive to large, city-centre focused teams.

However, when considering Solihull’s convenient location, excellent transport links and town centre amenities, which are also attractive to a contemporary workforce, there is plenty of potential for further office space of this calibre within the town centre.

If AIR is acting as a benchmark for these refurbished, ESG-focused offices, it may be the right time to invest in new projects of this nature for Solihull.

Business parks remain strong

The quarter’s second largest deal was made at Blythe Valley Business Park – 8,390 sq ft taken by Rohlig at One Central Boulevard. This is the third deal of 2024 at Blythe Valley at Junction 4 of the M42.

Meanwhile at Junction 6, Birmingham Business Park has also seen more movement, with GKN Automotive taking 4,383 sq ft at 2660 Kings Court. This follows 2,692 sq ft at 6100 Knights Court being taken by Bann Commercial in Q1, and 2,557 sq ft taken by Partners& at the Waterside Centre, also in Q1.

In total, 2024 has seen six deals taken at both business parks for a sum of 33,351 sq ft, 19% of the entire take-up for the M42 and Solihull area this year.

Two new deals at Quartz Point

In addition to movement at both Birmingham and Blythe Valley Business Parks, two new deals have been agreed at Quartz Point Office Park.

These are the first transactions at Quartz Point since 2022. Having previously been fully let, the popular office park has recently undertaken select refurbishments and advertised spaces were rapidly filled once again.

PJ Hegarty and Sons has taken 2,309 sq ft at Unit 1, while Adoption 4 U has taken the same amount at Unit 2, showing space of this kind is still a commodity in the area.

Coleshill continues reliable streak with new Q3 deal

The quarter’s third largest transaction, and Coleshill’s 6th biggest in 10 years, a 6,664 sq ft deal at Stewart Court with Innovation Group, has taken place.

This is the third Coleshill deal of the year, following the Q1 deals at Chantry House and The Courtyard, which totalled 3,269 ft ft. The new Stewart Court transaction brings the area’s 2024 sum to 9,933 sq ft.

These Coleshill deals are on-trend in their consistency. 8 deals were made in 2023, 12 in 2022 and 11 in 2021, possibly indicating that a further influx of transactions could be in store in Q4.

Outlook for M42 and Solihull office market

500 new EV charging points – Solihull Council has agreed to the installation of 500 new electric vehicle charging points by 2026. This further enhances Solihull’s initiative to become a more sustainable town, improving transportation standards and meeting the needs of more environmentally conscious workplaces.

New One Trinity Park plans approved – Plans to update several elements of the airport-adjacent building have now been approved. One Trinity Park will be upgraded with an outdoor terrace and seating area, an improved entrance and reception area and enhanced natural lighting.

What’s next?

Ahead of the final quarter of the year, the M42 and Solihull office market is at a tipping point. With the disappointing start to the year seemingly behind us, there’s good reason to believe Q4 will solidify the year as one of stability and reassurance.

Further deals at Solihull’s business parks, together with additional interest in AIR and other comprehensively refurbished office space could be on the horizon for a positive year’s end and a healthy office market in 2025.