Take-up in the central Birmingham office market dropped by one-quarter in 2012.
According to the latest figures from the Birmingham Office Market Forum, 500,955 sq ft of office space was transacted last year, compared with 669,798 sq ft in 2011, a drop of 25%.
The figure is the lowest reported annual take-up for central Birmingham since the BOMF figures were first compiled in 2007.
The largest deal of the year was signed on 19 December between Nurton Developments and law firm Shoosmiths, which took 40,000 sq ft at Nurton’s 158,000 sq ft Two Colmore Square in the city centre. The firm signed a 15-year lease at a rent understood to be at £25 per sq ft.
Although the year-end figures were disappointing, activity picked up in Q3 2012, with 173,501 sq ft let across 43 deals, compared with 146,654 sq ft for the first six months of the year.
According to the latest 2013 predictions by Jones Lang LaSalle, the office market in the regions will remain subdued but improve.
Prelet-led office development will continue to dominate the regional markets, said JLL.
| Central Birmingham office take-up | |
|---|---|
| 2012 | 500,955 sq ft |
| 2011 | 669,798 sq ft |
| 2010 | 668,392 sq ft |
| 2009 | 657,280 sq ft |
| 2008 | 959,317 sq ft |
| 2007 | 662,207 sq ft |
lisa.pilkington@estatesgazette.com
