Office market continues recovery from pandemic
DEMAND for commercial property in Birmingham remains strong as the city continues to bounce back from the pandemic, a new report has found.
According to Avison Young’s latest Big Nine office market report, demand for office property in Birmingham exceeded its ten-year average by 41 per cent - totalling 376,000 sq ft for city centre and outof-town markets - during the third quarter of 2021.
City centre take-up rose to 242,901 sq ft in Q3 - 16 per cent up on Q2.
During the three-month period, Birmingham hosted two of the largest deals outside of London after Aviva Investors sold Colmore Gate for £39.5 million and Arup agreed a deal for 68,000 sq ft of office space at One Centenary Way.
Elsewhere x+why signed up for 31,500 sq ft at Colmore Row and 40,000 sq ft on the Brindleyplace estate. Tilney Smith Williamson also signed a deal for 12,000 sq ft of space at 103 Colmore Row.
Carl Potter, principal and managing director of the Birmingham office at Avison Young, said: “Birmingham continues the upward trajectory we have started to see develop throughout 2021 as coronavirus restrictions ease and people have been returning to the office.
“The city has managed to maintain the bearing of a bigger performance in Q3, expanding on the promising activity experienced in Q2.
“With further deals in the pipeline and the great work taking place in
areas such as Colmore Row and Paradise, I’m confident Q4 will show continuing confidence.”
The report - which is published every three months and summarises activity in the property sector across nine major cities - also made reference to Birmingham’s strong out-oftown market. This was headlined by Mitie taking 32,848 sq ft at T2 Trinity Park and flexible workspace provider Chadwick Business Centres taking 14,952 sq ft at Blenheim Court, both in Solihull.
There were also three 5,000 sq ft to 10,000 sq ft deals at Birmingham Business Park to Galliford Try, Imtech Environ and Morrison Energy.
Charles Toogood, principal and managing director of the national offices team at Avison Young, said: “Avison Young’s latest Q3 Big Nine office market report yet again paints a positive picture for Birmingham as a city in recovery and that is something we expect to see continue.
“The forecasted increase of grade A supply is coming to fruition, giving occupiers increasing choice in a market more demanding than ever.
“An area of notable excitement with this is MEPC’s major development of One Centenary Way which is due for completion during December 2022 and proving to be a development to watch moving into the new year.
“As we look forward to the end of the year and beyond, Birmingham remains in good stead with other cities looking towards office life postpandemic - whether that be hybrid or a little closer to what we knew pre-lockdown.”