Office development in Birmingham is at its highest level for 13 years, with almost 1m sq ft of office space under construction.
According to the latest Deloitte Birmingham Crane Survey, nine new schemes have started and 693 hotel rooms are also under construction.
The report, the first by the Deloitte Real Estate team in the Midlands since September 2013, shows 969,000 sq ft of office space under construction, with hotel building three times higher than the 10-year average to the end of October 2015. In addition, student accommodation development in the city centre has returned after two years of inactivity, with 650 bedspaces now being built.
Edwin Bray, lead partner of Deloitte Real Estate in the Midlands, said: “The Midlands ‘engine’ is roaring loud and clear, and the year-on-year improvements and investments, such as the £600m refurbishment of New Street Station, the Grand Central Shopping Centre and the new Midlands Metro, just continue to strengthen the city’s offer.”
Developers have been encouraged by an increase in demand for office space – the 732,000 sq ft leased in the first nine months of 2015 was the highest figure since 2008.
That demand has helped push prime office yields below 5% for the first time since the crisis.
