As real estate advisor, Jones Lang LaSalle celebrates being involved in over half of the 336,937 sq ft transacted this year and 22 per cent of the deals, it says a lack of Grade A office instructions and stock could hamper a further upturn in the office market.
Jon Carmalt, head of office agency at Jones Lang LaSalle, Birmingham said: “Whilst we are totally delighted with our achievement in the first half, we are now almost experiencing the pain of our own success as we now have just a handful of Grade A quality office suites available to let.
Latest figures for quarter two, show Jones Lang LaSalle were involved in 172,357 sq ft of the 223,611 sq ft transacted – 7 deals reflecting 77.08% of the floor area take-up or 24% of deals, with an average deal size of 14,336 sq ft, significantly above the market average of c. 5,711 sq ft for the year to date.
Kelvin Craddock, associate director in the team added: “The figures suggest the office market is turning a corner and certainly enquiry levels are on the increase. However if we don’t get some new office developments mobilized in Birmingham soon, occupiers are going to be running very short on choice in the city.
“We predict that by 2015/16 there isn’t going to be much quality office stock of note available in the city if the trend for lack of development continues. Whilst this is 18-30 months away, we need to start addressing the shortage now and working with all the interested parties to promote greater growth in the office sector.
“Our saving grace is that we have a very proactive Local Enterprise Partnership (LEP) helping to facilitate the early commencement of major schemes and Birmingham is attracting greater attention through HS2 and the £600m redevelopment of New Street station. This will hopefully provide the stimulus necessary to attract more occupiers into the city.”
