Birmingham’s city centre office sector is winning the ‘talent magnet’ battle that will allow the city to thrive in future years, according to the annual Birmingham Report produced by property consultancy Knight Frank.
The Report, which claims Birmingham has cemented its placed as the location for businesses looking to relocate outside of London, says the city centre is now showing an ability to create talent magnets – offices and districts that are able to attract and keep bright people and therefore become highly valuable to businesses.
Ashley Hudson, head of the Knight Frank office in Birmingham, said: “The ongoing success of the city in attracting business is dependent on winning the war for talent. New office developments and the districts in which they stand must become talent magnets, places that appeal to talent as working and social environments.”
He said the city had recently seen HSBC, Advanced (formally Advanced Computer Software), Deutsche Bank, Beasley Insurance and – more recently – the Government Property Unit all secure space.
The number of active businesses in Birmingham this year was up 13.5 per cent on 2016 levels, three times the UK growth rate, and the West Midlands had increased workforce jobs by 110,000 over the year to June 2017, the largest rise in the UK by some margin.
The Knight Frank Report spelled out five key attributes that city centre talent magnets must display to succeed – well-being, amenity, connectivity, community and a strong brand identity.
Ashley Hudson said: “With the modern workforce more health aware, places and spaces must support well-being and vitality, and health-related facilities such as drop-in surgeries, dentists and physiotherapy will add to this agenda in the future.”
According to the Report the importance of good amenities would grow and offices that provided ground floor retail or easy access to food and beverage outlets, bars, and, in time, educational facilities would be more appealing to an office occupier.
Connectivity would also be vital, with a combination of fast and efficient transport infrastructure for staff, clients and suppliers, and robust and resilient digital connectivity for business continuity and to enable flexible working.
According to Ashley Hudson the recent co-working phenomenon had brought community and collaboration into the foreground of office space design. “Spaces that promote shared experiences have risen in appeal and in the future this sense of community will only grow in importance,” he said.
He added that brand identity had become a key corporate statement of intent. “Brand identity is no longer confined to external signage or the occupation of trophy buildings,” he said. “Occupiers are now using innovative fit-outs to convey their brand identity not just to the market, but also to their existing and future staff.
“Commercial property investors are now creating spaces that resonate with the needs of talented workers, and occupiers gravitate towards these spaces as part of their strategy to attract and retain talent.”
Ashley Hudson said the Birmingham Report showed that by addressing these requirements Birmingham was now thriving as a top UK destination for businesses and young professionals.
“Birmingham continues to undergo significant redevelopment and refurbishment in order to house these incoming businesses, delivering schemes such as Paradise Circus, 103 and 55 Colmore Row and Snow Hill, which promise a mixed-use environment of office, retail and leisure in the CBD area, putting focus on lifestyle to ensure the location remains attractive to occupiers and their employees alike.
“As this redevelopment continues and the appeal of Birmingham increases, commercial investors are continuing to flood in, with eyes on the city’s strong covenants in high quality buildings, rental growth and yields higher than those in London.”
