Birmingham’s office market is on track for a major boost with the expected arrival of the HS2 project acting as a catalyst for businesses and investors to explore opportunities in the city, according to national commercial property consultancy Lambert Smith Hampton (LSH).
Demand for office space has grown throughout 2014 and further significant deals are in the pipeline, said Alex Tross, head of office agency at LSH in Birmingham, in his Office Market Pulse Q3 report.
Office take-up in quarter three in the central Birmingham office market totaled 156,202 sq ft, with 44 deals completed. When added to the 63 deals, totaling 216,094 sq ft, in the first two quarters, the year to date totals 372,296 sq ft in 107 deals.
Alex said: “The sentiment earlier this year that the Birmingham market was improving has now been evidenced by quarter on quarter growth in take-up. There was 103,000 in Q1, 113,000 in Q2 and with some large lettings to HS2 (c100,000 sq ft), Extra Energy (c35,000 sq ft) and BDO (c35,000 sq ft) in the pipeline, we expect that Q4 will be the most successful quarter yet.”
He added: “The key thing is an increase in inward investment, with Birmingham now attracting new occupiers like HS2 and Extra Energy. There is now a compelling business case to locate in Birmingham and inward investment is growing, justifying the infra-structure investment Birmingham City Council has made.
“The arrival of the HS2 headquarters will be a major catalyst for continued growth and the whole city is geared up for increased demand for office space from related businesses looking to locate near to the project.”
Alex added: “The great news for Birmingham is that all this activity will result in more investment, more jobs and the city centre will gain more diverse retailers and leisure provision. The whole picture is getting much more positive.”