CEG has welcomed almost 400 people to its Alpha Birmingham development over the last year following a raft of deals at the iconic 28-storey tower.
There have been eight recent lettings of 37,000 sq ft, including the NHS taking 11,000 sq ft over a floor and a half, and Hitachi Energy moving into the building. CEG has also renewed six leases of 49,000 sq ft, including two floors Electronic Arts , a floor to Travel Perk and two floors to Systra. A further 21,000 sq ft is under offer and only 20,000 sq ft remains at the development.
CEG says the deals are due in part to the circa £17million makeover the building recently received, but much of the interest has been due to the company’s innovative approach to flexible leasing and the fact the team will deliver bespoke space without a big capex outlay.
With custom designed and fit out office space being the norm in the US, this trend is fast sweeping Britain with businesses using their workspace to attract and retain staff and encourage teams back into the office post pandemic.
Ben Thacker, Director of Office Agency at Savills explains “Many businesses, particularly those finding it hard to predict growth or keen to offer flexible working practices, are considering hybrid solutions alongside traditional offices, seeking bespoke, high-quality space which will help them attract and retain talent.
“CEG’s Let Ready fully-furnished flexible lease studios provide desks from 2 – 200 people and, seeing the transatlantic trend for more bespoke space growing in the UK, the company recently launched a custom offer providing an in-house team to design, specify and project manage bespoke offices.
“At Alpha, CEG delivered one of its largest custom fit-out deals to date, personalising 14,000 sq ft for Systra, swiftly followed by a further 7,000 sq ft for Hitachi Energy.
“This trend is set to continue. Most companies don’t employ experts at design and fitting out workspace, they have a business to run and staff to manage, so a landlord willing to deliver this, especially one that will amortise the costs within the lease, can help to clinch the deal and speed up delivery.
“While some landlords and agents maybe reticent in terms of how this affects a market deal, with the misconception it might mean missing out on a rent-free period incentive, CEG has proven this isn’t the case. In fact, often the value of delivering it alongside a wider Cat B means more savings being passed to the end occupier which, coupled with no upfront cost and risk, is a bonus.”
Richard Brooks, investment manager at CEG, added: “Our in-house team of building and project managers know our buildings better than anyone. This enabling them to design the most efficient space, working in harmony with existing pipework, air/cooling system and fire constraints, often using same contractor which delivered the Cat A, resulting in time and cost savings, as well as providing the most sustainable options.
“We manage the process from end to end, sharing best practice and meeting the tenant’s business goals from design and layout to productivity, health and sustainability.
“Our tried and tested supply chain and UK-wide buying power means we can pass cost savings onto the tenant. Best of all, when the tenant signs up for their lease they have certainty on the budget as we take all of the risk. We can also incorporate the cost over the length of the lease if preferred, so there is no upfront outlay.”
Laura Fleming, Country Managing Director, UK, and Ireland for Hitachi Energy explains: “We wanted the highest quality, contemporary space for our Birmingham team and this is what CEG was able to deliver at Alpha.
“They have provided a full turnkey solution that not only meets, but exceeds, our brief and the team will love working in such a fantastic space. As well as being at the heart of Birmingham, they will also have access to onsite amenities from the café, wellness studio, gym and spin classes to the contemplation rooms and cycling facilities.”
