Office space Solihull and M42 corridor – quarter 3 2013 take-up
The quarter 3 research statistics of transactions for office space in Solihull and the M42 corridor show the focus moving to the south M42 area with four transactions for office space in Redditch and two transactions for office space in Bromsgrove.
Although office space in Solihull has seen a marked climb down in the average size of transaction this quarter, we remain confident about the market due to the number of larger deals that will complete next quarter and bolster the figures. This quarter’s relatively low level of take-up is actually on a par with Q3 last year in terms of total square footage, although with 63% more transactions this quarter. On an annualised basis, the market is still in line with the average take-up throughout the last 5 years of c. 225,000 sq ft per annum.
Demand for freehold offices for sale in Solihull and M42 remains strong
Courtyard office schemes remain popular throughout the region – Brooklands offices in Redditch, Topaz offices in Bromsgrove, The Pavilions offices in Shirley and Chestnut Court offices in Sambourne, Redditch. The self-contained nature of these commercial properties coupled with the opportunity to buy, result in the freehold market remaining strong at a level.
Longer decision making cycle should prompt companies to act sooner
The transactions that have taken place for office space in Solihull and the M42 corridor are where the decision making process has been simplified. Larger transactions are progressing slowly because the decision making process and sign-off procedures are longer due to the cost savings needing to be justified wholly. Transactions for office space of 10,000 sq ft and over take at least nine months to complete. For this reason, companies need to start their search for new office space much earlier than in the past.
KWB completes two-thirds of transactions for office space in Solihull, Redditch and Bromsgrove
KWB completed 67% of the transactions for office space in Solihull, Redditch and Bromsgrove by square footage – including the top three – and seven of the thirteen transactions in total.
Mark Robinson, partner at KWB commercial property agents, commented: “If the transactions for offices in Solihull and the M42 corridor currently in solicitors’ hands complete, we expect quarter 4 to be a particularly active quarter. There is no limit to supply of office space currently in the smaller size bracket. However, if the larger transactions do complete and feasibility studies currently being worked on start to become active, then office space in Solihull over 10,000 sq ft will become severely limited.”
Refurbished office space in Solihull provides options
There are two speculative office space refurbishments – Building One Trinity Park and 4060 Lakeside. Further office refurbishments are planned in Solihull town centre, including Sapphire Court, which KWB is marketing – 45,000 sq ft of high quality offices adjacent to the train station. The most notable building to come to market is Lansdowne Gate on New Road, where works are currently being considered for a refurbishment of this 68,000 sq ft commercial property, which has interest in it already.
See full details of the transactions for office space in Solihull and M42 corridor.