Birmingham Business Park dominated lettings in the M42 and Solihull office market in the second quarter of 2017, with the three largest lettings, totalling nearly 35,000 sq ft, responsible for more than half the total space disposed of (62,508 sq ft), according to Birmingham-based independent commercial property agency KWB.
The letting of 20,774 sq ft to BCA Logistics at 1320 Solihull Parkway on Birmingham Business Park was the largest of these, and the largest transaction in the Solihull office market, and in the out of Birmingham office market, for the past 12 months.
The other major transactions were a letting of 7,771 sq ft at Bishops Court to Costain, for a second relocation of parts of its business to Birmingham Business Park, and the acquisition by Diamond FS of 6,384 sq ft of freehold space at 2220-2226 The Crescent. This was also the larger of the two transactions of freehold office space in the quarter.
Writing in KWB’s M42 And Solihull Office Market Research – Quarter 2 2017 Report, Mark Robinson, Director in KWB’s Office Agency Team, says that at 140,010 sq ft year-to-date, the Solihull office market is currently running slightly short of its long-term average.
He says: “The transaction figures are only very slightly down on the average. Due to its diverse range of occupiers, the Solihull office market is relatively unaffected by economic uncertainty.
“Birmingham Business Park has reasserted its dominance in the market following an investment programme which has delivered better on-site facilities and amenities and refurbished office space which, in turn, is helping to both attract and retain occupiers.
“The M42 and Solihull office market has much to offer companies who operate in the Midlands or across the country. Transport links and connectivity are huge selling points for the area. Birmingham Airport, Birmingham International train station and Junction 6 of the M42 are some of the biggest benefits of the location of parks such as Birmingham Business Park and Blythe Valley Park, as well as the variety of amenities nearby, most notably Resorts World, the NEC and the Genting Arena.”
In the second quarter of 2017, Solihull also benefited from inward investment with Goldbeck Construction and Ferranti Computer Systems moving to Eagle 2 and Birmingham Business Park respectively, while Solihull town centre proved appealing for SMEs, with four lettings.
According to Mr Robinson, there is still a lack of supply in the market. He says: “Recently completed and forthcoming refurbishments, such as One Central Boulevard at Blythe Valley Park, 2800 The Crescent at Birmingham Business Park, and Trinity Central in Solihull will add much-needed, high quality office stock to the market, but these are likely to be snapped up very quickly. These will be welcome contributors to the transaction figures of the coming few quarters, but not a solution to the ongoing demand for office space in the area.
“Furthermore, while we see HS2 contractors locate administrative divisions within Birmingham city centre, contractors are expected to require ‘project space’ to deal with ‘on the ground’ logistics, as work is subcontracted out and other companies brought into the fray. This could, potentially, be a real ‘shot in the arm’ for the M42 and Solihull office market, involving substantial inward investment.”