The 2022 Birmingham city centre office market was highly resilient against a backdrop of national and global economic changes, according to property consultancy KWB.
The firm’s Birmingham Office Market – Q4 and 2022 Review shows an annual office take-up of 692,700 sq ft across 15 deals, compared to 656,735 sq ft in 2021. The largest transaction of 2022 saw investment banking group Goldman Sachs take 110,000 sq ft at One Centenary Way.
Q4 was the strongest quarter of the year with activity during October, November and December higher than expected. The largest letting was to private higher education provider Global Banking School, which took 43,766 sq ft at Norfolk House.
Over 70 per cent of take up in 2022 involved just three sectors – professional services, financial and government and education – demonstrating their importance to the city.
ESG (Environmental, Social and Governance) continued to be a key driver for occupiers looking to relocate to smaller, higher quality space better suited to the flexible working model and attractive to skilled staff.
Many of the higher profile transactions took space at brand new buildings and those that had undergone extensive refurbishment, causing a shortage in supply. The newly built 103 Colmore Row, for example, secured six deals totalling 69,921 sq ft and is expected to soon be fully let.
Malcolm Jones, head of office agency at KWB, said: “Occupiers are looking to move, as they endeavour to create a better working experience for their teams. The importance of doing this has become paramount in recent months given the cost of living crisis which has motivated people to seek better salaries and conditions of work.
“As availability of newly completed and still under construction properties has diminished, it’s natural to consider where the next opportunity is.
“Brindleyplace is a location that has the potential to offer some of the best office space in Birmingham city centre.
“And we can look forward to The Drum, a newly-announced 200,000 sq ft Grade A office space in the vacated John Lewis building in Grand Central shopping centre. This offering competes with the likes of 103 Colmore Row and Centenary square yet falls outside the Colmore Business District, potentially extending the territory for the very best Grade A office space in Birmingham.”
