Birmingham’s city centre office core has seen take-up plummet by more than half for the third quarter of 2016, compared to Q2.
Latest research by the Birmingham Office Market Forum (BOMF) shows Q3 city centre take-up comprised 35 deals totalling just 95,546 sq ft, reflecting a 55.8% drop on the last quarter’s figures (Q2 – 216,095 sq ft).
A BOMF spokesman said: “While the Q3 take-up figures are in isolation below average, they follow an exceptional first half of 2016 and a record-breaking 2015. Birmingham has experienced equivalent factors impacting most of the regional office markets, namely the uncertainty seen in the run-up to Brexit and fewer lease events by virtue of the quieter leasing activity experienced five years ago.”
The largest Q3 deal saw construction and development company Bouygues UK take 17,271 sq ft on two floors of Albert House, in Quay Place, close to the Barclaycard Arena. It agreed a 10-year lease with landlord Columbia Threadneedle. CBRE and JLL advised.
This was the only deal in Q3 of more than 10,000 sq ft.
Take-up in the city core so far this year totals 595,338 sq ft in 110 deals says BOMF. These figures follow a record-breaking year in 2015, where a total of nearly 1m sq ft of take-up was recorded.
BOMF added: “A number of active HS2-related enquiries are awaiting decisions, pending recommitment by government. However, the outlook remains positive for the remainder of the year and it is clear that Birmingham will see fresh impetus in the office market when government clarifies its commitment to HS2, which remains on track to receive Royal assent by December.”
• To send feedback e-mail lisa.pilkington@estatesgazette.com or Tweet @eglisap or @estatesgazette
