Businesses are struggling to find smaller suites of Solihull office space, as vacancy rates continue to decline. This issue will only worsen in the coming quarters, with no sign of any new offices in Solihull coming to the market.
Malcolm Jones, Head of Office Agency at KWB Birmingham commercial property agents, has highlighted that the effective office vacancy rate is now only 3% in Solihull town centre. Furthermore, there is a real shortage of office suites of 3,500 sq ft and below in and around Solihull.
Malcolm said: “So far this year, smaller office suites have accounted for just under half of the transactions for offices in Solihull and the M42 corridor market. However, it was just 20% in the third quarter, which indicates the increasing lack of choice.
“The number of occupiers instructing us to search for and acquire office space in Solihull is also increasing. We are the most active office agent in Solihull, but we have just four office properties offering suites under 3,500 sq ft. One Cranmore Drive, 2 The Courtyard, Avon House and 16 Hockley Court are receiving good interest and won’t last. The market is crying out for new office space.”
2 The Courtyard, Solihull
According to Malcolm, factors such as cost and corporate presence are behind smaller occupiers still desiring traditional office leases. The demand is resilient, despite the growth in serviced office space.
Malcolm continued: “Smaller organisations that have grown and matured in serviced office space are taking lets on small office suites. These are cheaper in the longer term, and occupiers are more likely to have the opportunity to customise their offices.
“It’s a longer commitment than the ‘easy in, easy out’ terms of serviced offices, but rents can be half as much.
“With their own front door, occupiers can also brand the exterior, and fit out the interior to match their corporate culture. This demonstrates a much more permanent presence to customers and staff alike.”
KWB is the letting agent for One Cranmore Drive, 2 The Courtyard, Avon House and 16 Hockley Court offices in Solihull. If you are interested in any of these commercial properties, or offices in Solihull, KWB encourages you to get in touch.