If recent figures published by the Birmingham Office Market Forum are anything to go by, it looks like the office market is in for a positive end to the year as uptake rises, writes Dominic Lean, Surveyor at Birmingham property consultancy, Vail Williams LLP:
Since we’ve been part of the thriving West Midlands region for some time, it comes as no surprise to us that England’s second city should buck the national property trend.
Indeed, this has been our experience for some time now, despite the uncertainty spearheaded by Brexit.
It’s one of the largest and fastest growing economic areas outside London, and there’s a lot going on here – from the inspiring 20-year vision for the city known as the ‘Big City Plan’ and HS2, to the arrival of the Commonwealth Games in 2022.
There is a lot under construction here including HS2 infrastructure and the rejuvenation of The Grand Hotel, as well as the development of 1.124 million sq. ft. of top quality, Grade A office space.
And with further waves of investment in the pipeline, Birmingham promises to retain its crown as the UK’s second city, competing on a global scale as a world-class business destination.
Indeed, it’s already turning a few corporate heads.
In the last year we’ve seen some well-known brands like HSBC and HMRC relocate here from London and other parts of the country to make the most of all that the city has to offer, and Channel 4 has the city within its sights too.
But what makes Birmingham ‘the UK’s best city for investment property prospects’ and why is it such a good home for large and small businesses alike?
It comes down to the sheer range of office locations available – everything from new Grade A developments such as Paradise and Three Snowhill to a wide variety of serviced office and co-working spaces.
And when it comes to our city’s serviced office market, we’re able to offer businesses an enticing level of flexibility over and above more traditional property leases.
For businesses operating in a landscape of uncertainty, the need for agility to respond to the demands of the market and their customers, is vital. And the serviced office can absolutely deliver on this – and more.
Boasting more flexible lease terms and shorter notice periods, whilst delivering fantastic facilities from some of the city’s best locations, serviced offices are the go-to option for short term, cost-effective lease solutions in areas where traditional rents have been high.
Indeed, in the last 12 months their rise in popularity represented 19% of total office space take-up in the city – that’s over 200,000 sq. ft. of office space, including 76,000 sq. ft. let to Spaces at The Crossway building and 36,000 sq. ft. let to BE Offices at Somerset House.
Not only this, the co-working experience offered by the likes of IWC (Spaces and Regus), Orega, iHub and Landmark, allows staff to meet like-minded people, fostering an environment for growth, innovation and the sharing of knowledge.
So, whether you’re a startup experiencing growth or a multinational seeking to access new markets, don’t rule out the serviced office when considering your next strategic property move.
With prime headline rents expected to push beyond £35.00 per sq ft by the end of 2018, the flexibility offered by serviced offices might just make it the right short-term solution for you.