Office space Solihull and M42 corridor – quarter 1 2014 take-up

Overall, Q1 2014 achieved a healthy level of transactions for office space in Solihull and the M42 corridor, totalling 60,539 sq ft, just above the annual long term average of 220,000 sq ft and continuing the historical trend of the first quarter of the year being busier than average.

Of the 18 M42 / Solihull office space transactions, whilst none were over 10,000 sq ft this quarter (there were three in the same quarter last year), there were still some reasonable sized transactions, for example:

  • Kingsgate House, Kings Norton Business Centre – 9,499 sq ft
  • 2480 Regents Court, Birmingham Business Park – 8,750 sq ft

Whilst the quarter has performed acceptably and in line with the average long term annual take-up, we are conscious of the number of significant ‘under offer’ transactions for offices in Solihull that will also complete shortly.

Offices at Birmingham Business Park show marked increase in demand

The quarter also demonstrated a marked increase in demand for offices at Birmingham Business Park – 28% (16,674 sq ft) of the quarter’s office space take-up was at the Park:

UKDN 2480 Regents Court 8,750 sq ft
Longcross Construction 6240 Bishop’s Court 3,894 sq ft
Toll Group The Waterside Centre 2,557 sq ft
Chalcroft Construction 6270 Bishops Court 1,473 sq ft

Birmingham Business Park has not experienced this level of demand for many years. The level of oversupply, currently at 22%, is steadily reducing and could significantly reduce over the next 12 months if potential occupiers currently looking at office space at Birmingham Business Park complete their acquisitions.

This increased demand demonstrates that a well located and well specified park can still attract occupiers, and that the lack of demand in previous years was a result of the poor trading performance of occupiers rather than the fundamentals of the Park.

Interestingly, part of the resurgence is down to attracting new occupiers such as UKDN, Longcross and Chalcroft.

Companies in Solihull and M42 corridor doing well and expanding

There is also evidence of companies doing well and expanding – Equiniti increased by 50% its office space at Kings Norton Business Centre within Kingsgate House, a location that aligns itself far more to M42/M5 motorway access than Birmingham city centre. UKDN and EUM Consulting both moved up from serviced offices – the businesses are doing well, staff numbers are increasing and so they have moved on to take office space on conventional leases rather than in serviced offices.

Solihull has always enjoyed a diverse range of business sectors although utilities, property and financial services feature prominently this quarter.

KWB completed 60% of transactions for office space in Solihull and the M42 corridor

KWB continued its strong presence in the market by completing 60% by square footage of the transactions for office space in Solihull and the M42 corridor.

See full details of the transactions for office space in Solihull and M42 corridor.

For more information, please contact Mark Robinson on 0121 212 5994 or email mrobinson@kwboffice.com.