Birmingham
Take-up
TOTAL TAKE-UP IN QUARTER (SQ FT)
CHANGE ON LAST QUARTER
CHANGE ON 10 YR QUARTERLY AVG
TAKE-UP (SQ FT)
Source: Avison Young
Q4 take-up totalled 261,455 sq ft, 7% below the 10-year quarterly average. This brought total 2023 take-up to 829,928 sq ft, 21% below the 10-year average.
City centre take-up was comparatively stronger at 15% above average levels, whereas the out-of-town market was 65% below.
Key deals included:
- Mills & Reeve’s 32,088 sq ft lease at One Centenary Way;
- Global Banking School’s 29,383 sq ft lease at Norfolk House;
- The Crown Prosecution Service’s 27,589 sq ft lease at 9 Colmore Row.
Over the past four quarters, professional services, government and services and financial services saw the greatest share of take-up, together accounting for 66% of deals.
The city’s prime rent remains at £41.00 per sq ft, up 2.5% on last year.
NOTABLE DEALS
Source: Avison Young
PRIME RENT
Per sq ft
0%
Quarterly change
Source: Avison Young
12 month change
Rent free months (10-year lease)
TAKE-UP BY SECTOR
Source: Avison Young
ANNUAL TAKE-UP (SQ FT)
Source: Avison Young
Availability
AVAILABILITY RATE
CHANGE ON LAST QUARTER
CHANGE ON LAST YEAR
AVAILABILITY (SQ FT)
Source: Avison Young/CoStar
The availability rate rose 127 basis points in the quarter to 11.3%. Premium quality space is undersupplied, with the grade A availability rate at 2.7%.
Development pipeline
DEVELOPMENT PIPELINE (SQ FT)
Source: Avison Young, PMA
A total 613,000 sq ft of new space was delivered in 2023 including 280,000 sq ft at MEPC’s Paradise development, 120,000 sq ft at BruntwoodSciTech’s Enterprise Wharf and 213,000 sq ft at CBRE IM’s 10 Brindleyplace. A total of 464,000 sq ft is available to let across under construction schemes due to complete by 2025, including King Edward House, 5 St Philips Place, 19 Cornwall Street and 3 Chamberlain Square, Paradise. Sustainability and amenity provision are key themes across all schemes.
Investment
TOTAL INVESTMENT VOLUMES
CHANGE ON LAST QUARTER
CHANGE ON 10 YR QUARTERLY AVG
PRIME YIELD
INVESTMENT VOLUMES
Source: Real Capital Analytics, Avison Young
INSIGHT
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TOP DEALS
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