Charles Warrack, one of our partners and Head of Birmingham Office Agency reports that the central Birmingham office market is demonstrating impressive resilience. It has reached its highest figures for the first three quarters of a calendar year since 2015. Charles also emphasised the significant role of the education sector in the commercial office market, as reflected in the Q3 trends.
In Q3, there were 23 transactions totalling 348,690 sq ft. Combined with the 48 deals totalling 368,794 sq ft in the first half of 2024, this brings the total to 717,484 sq ft across 71 deals.
This three-quarter stage total is the highest since 2015, when HSBC UK opened its headquarters in Birmingham city centre.
He noted two standout transactions: Aston University taking nearly 190,000 sq ft at 10 Woodcock Street and the Global Banking School securing just over 68,000 sq ft at 1 Brindleyplace.
“These transactions are not only positive for central Birmingham but also underscore the resilience and popularity of the Aston and Brindleyplace areas,” Charles said.
“Regular conversations with occupiers, tenants, and landlords reveal key trends and emerging ones. The specification of office buildings remains crucial, with features like nearby coffee shops, on-site gyms, cycle and storage facilities, changing and showering facilities, and tenant break-out areas being highly sought after to retain and recruit staff.
“I’ve also noticed that some occupiers are increasingly focused on value for money. They aren’t necessarily looking for budget space but require offices that are both functional and financially viable.
“I believe this trend will continue alongside the familiar flight to quality observed over the past three or four years. There’s a clear message to landlords: if you have an underperforming office building, it’s crucial to consider improvements to its accommodation and facilities. Upgrades significantly enhance the chances of successful lettings, as evidenced by Q3 take-up figures.”
Charles also pointed out the ongoing trend of flex/serviced office space, which supports the start-up economy in the city centre.
He added, “The popularity of the serviced office market is likely to grow, with new entrants eyeing accommodation, reflecting the strength and diversity of the office market. The serviced office market supports the traditional office market by providing an entry-level way into the Birmingham market, offering flexibility for occupiers to grow and flourish.
“With the final quarter still to come, I anticipate a strong finish to 2024.”
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