Birmingham’s office market continues to bounce back in 2022 according to strategic real estate advisor Avison Young’s latest Big Nine office market report.
The first quarter of this year has seen take-up grow nine per cent when compared to the final quarter of 2021, totalling 260,444 sq ft. The continued demand for high-quality stock also shines through, with three quarters (75 per cent) of Q1 deals in the city core being for Grade A space.
The same upward trajectory is being witnessed in the out-of-town market, experiencing a 14 per cent increase. Both the city and out-of-town results for Q1 2022 represent some of the strongest results achieved in Birmingham since before the pandemic.
Spurred by the continued investment in the core of the city, Victoria Square House and Chamberlain Square are experiencing high volumes of activity. Notable Q1 deals include the debut of established co-working provider, Cubo Work in Birmingham with 24,300 sq ft of space at Two Chamberlain Square, while the Government continues to grow its presence in the city. The Office of the Public Guardian recently signed an agreement for 27,000 sq ft space in the city’s Victoria Square House, and last year, the Department for Work and Pensions acquired the remainder of space at the B1 building in the Jewellery Quarter where it now occupies 65,000 sq ft.
Carl Potter, Principal and Managing Director of the Birmingham Office at Avison Young said:
“Birmingham continues to prove its resilience, with increasing confidence in the market shining through in Q1 this year. Beyond the volume and uptick in activity, the demand for Grade A space continues, and we’re pleased to see Birmingham responding to this with a healthy supply of quality options coming through now and later this year.
“Both new and existing investors are staking their claim in the city, and if this upward trajectory continues as predicted, 2022 will be a very positive year for Birmingham.”
Out of town
The performance of Birmingham’s out-of-town market is also strong, totalling 85,183 sq ft in Q1 this year, up 14 per cent when compared to the final quarter of 2021. A major Government deal at Birmingham Business Park contributed heavily to this healthy performance, marking the largest deal at the park for more than two decades.
Charles Toogood, Principal and Managing Director, National Offices Team at Avison Young, said:
“It has been encouraging to see Birmingham continue to respond to an evolving office market and continue to perform exceptionally, with quality Grade A space being at the forefront of this activity – both out-of-town and in the city core.
“Birmingham is exceeding expectations, achieving some of the biggest deals across the country and seeing both public and private sector occupiers affirming their commitment to the city. Government’s continued confidence is also clear, with the deal at Birmingham Business Park being a real Q1 highlight, which has a positive ripple effect in the wider market. Looking ahead to the rest of this year, the city is on track for a strong performance.”