Unprecedented demand for prime office space in central Birmingham is set to see headline rents rise to a new high of £35 per sq ft over the coming three years.
According to the latest research by Deloitte Real Estate, the three-year hiatus between now and 2018 – when more than 1m sq ft of new office space is expected to come on stream – means the current dearth of space in the city will push office rents up.
Edwin Bray, partner for Deloitte in the Midlands, said: “Until major schemes such as Arena Central and Paradise are completed, it is going to be very difficult to find large open-plan floorplates in the city.
“We have seen this reflected in headline rents which have moved from around £27.50 per sq ft last year to their current levels of around £30 per sq ft. The trend is only going to continue in the coming years as rents soar to new highs.”
