Office take-up in Birmingham reached 203,385 sq ft in Q1 2024, a 32% increase on Q1 2023, according to Savills.
The research also shows take-up was up 11% on the five-year average and 19% on the 10-year average.
The largest deal of the quarter was a prelet at Typhoo Wharf, where the BBC has taken 84,000 sq ft.
Savills said grade-A offices accounted for 84% of the total take-up in Q1, which is the highest proportion since 2020 and highlights the continuing flight to quality by occupiers and ongoing demand for high-quality space in the most connected locations.
This strong appetite from occupiers, combined with a shortage of prime space in the city, has meant a headline rent of £42.50 per sq ft is now firmly established, with Savills anticipating it will rise to at least £43.50 per sq ft by the end of this year and potentially further for prelet commitments. Looking ahead, forecasts indicate prime rents will consistently reach £48 per sq ft by 2028, reflecting expected growth of 13%.
The technology, media, and telecommunications sector accounted for 47% of take-up in Q1, while public services, education and the health sector represented 33%. Notably, the education sector accounted for 44,670 sq ft of the total take-up owing to a single deal with University College Birmingham at Baskerville House, Centenary Square, underlining the city’s increasing appeal and investment in this sector.
Ben Thacker, director in Savills Birmingham office agency team, said: “The increased take-up in Birmingham’s office market, combined with the diversification in its occupier base, demonstrates the city’s continued strength as a key business destination.
“The steady rise of the education sector is already creating an influx of new talent into the economy, which is reflected in the high graduate retention levels, and also provides landlords with an additional avenue of prospective occupier demand. The significant letting to the BBC in Q1 will bring a welcome boost to the city’s appeal to the creative and media industries.
“As we head into the second half of the year, we expect this pattern to continue with occupiers increasingly mindful of reducing availability and a limited pipeline of new developments coming through.”
Image: Typoo Wharf by Stoford
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