Healthy level of office space demand in Birmingham in 2010

King Sturge report shows slight increase on 2009 take-up figures

Article posted: 28 Feb 2011

According to King Sturge’s recent national office overview, the office space market in Birmingham recorded a healthy level of demand in 2010 with a take up of around 670,000 sq ft.

Although this figure represents only a slight increase (2%) over 2009, this figure is based on a higher number of transactions, the largest of which included The Binding Site’s take up of 107,000 sq ft of office space in Edgbaston at Calthorpe House (pictured) in September.

Other notable transactions included The Office of Legal Complaints’ take up of 41,500 sq ft of office space in Birmingham city centre at Baskerville House and 30,000 sq ft offices in Redditch leased by NEW College.

Availability at the end of 2010 was estimated at 4m sq ft, representing a vacancy rate of 22.9%, on par with 2009 levels.

Headline rents for prime in-town space edged up slightly (by 4%) to around £28 per sq ft, but diminished demand for out of town space led to a decrease (3%) to around £18.50 per sq ft.

In terms of investments in the City and surrounding area, 2010 continued as 2009 left off with considerable momentum in the prime office investment market in the city. One of the most significant deals of the year was Hines Global and Moorfield’s purchase of Brindleyplace for £195m.

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Posted by Dan