Office take-up in Central Birmingham is set to top 46,450 sq m (500,000 sq ft) in 1997, according to research published by Richard Ellis. The report also reveals that 75% of the space currently under construction – some 17,418 sq m (187,000 sq ft) – is pre-let.
John Griffiths, head of offices agency at RE’s Birmingham office, comments that take-up of 46,450 sq m (500,000 sq ft) would top 1995’s figures after a poor 1996, which saw only 32,979 sq m (355,000 sq ft) come off the market.
“We anticipate that take-up levels for prime space will grow dramatically as pent-up demand and greater commercial market confidence leads to a resurgance of the office market in Birmingham,” he said.
Pre-let buildings under construction include Two Brindleyplace for Lloyds Bank at Argent’s edge-of-city-centre scheme and Eversheds new office in Colmore Row.
The only speculative building under construction is Three Brindleyplace and some 2,415 sq m (26,000 sq ft) is pre-let to Grimley. Dibb Lupton Alsop is also believed to be looking at taking the remainder of the 8,500 sq m (91,500 sq ft) building.
Griffiths noted a possible shift in the balance of out-of-town and city centre markets. “There is a growing demand for offices within the M42 corridor but there is a restricted level of availability compared to the city centre, so we may see M42 demand moving back towards the city centre,” he added.
EGi News 07/04/97
