Birmingham

Total office activity for 2020 amounted to 520,000 sq ft in the city centre and 172,000 sq ft out-of-town, 29% and 48% below their respective averages. The city centre market performed better than the out-of-town market largely due to its strong performance at the beginning of the year, whereas during Q4 the out-of-town market proved more robust. The largest deal of the quarter was 53,882 sq ft to Lounge at Blythe Valley Park, Solihull and in the city centre the largest deal was 14,208 sq ft to Axa Insurance at St Philips Point.

While several enquiries have been temporarily put on hold, we expect requirements to re-emerge as the year progresses and as uncertainty lifts, as there are plenty of significant lease events from structural demand over the next 12 months. Requirements are healthier for better quality space which may help underpin prime rental levels, although we expect an increase in secondary office vacancy rates. In the medium-term Birmingham will benefit from the Government’s ‘levelling up’ agenda, which aims to move thousands of civil servants out of London. In fact, plans for the Government Property Agency’s third hub in Birmingham are well underway.

There is currently 434,000 sq ft of immediately available grade A space in the city centre and two further speculative developments under construction. 228,000 sq ft 103 Colmore Row is fully available and due for completion this summer and 280,000 sq ft 1 Centenary Way, Paradise is due to complete towards the end of 2022, where 70,000 sq ft is already under offer and architects have been appointed on the next phase, 3 Chamberlain Square. In addition, CBREGi have just commenced the major refurbishment of 8/10 Brindleyplace (213,000 sq ft), which completes in Q3 2022.

TAKE UP Q4

City Centre

40,398 sq ft

Out of Town

80,423 sq ft

HEADLINE RENT

City Centre

£37 per sq ft

Out of Town

£26 per sq ft

UNDER CONSTRUCTION

Total

508,000 sq ft

Prelet

0%

PRIME YIELD

Q4 2020

5%

TOP FIVE DEALS Q4

KEY SECTOR ACTIVITY 2020

Telecommunications

51%

Retail & leisure

11%

Central government

10%


TAKE-UP

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