Birmingham’s office investment market has achieved annual total returns of 11.5% and has outperformed all other major UK office markets over the past 15 years, according to Jones Lang LaSalle’s Performance of Regional Offices.
The report reveals that since 1985 Birmingham’s percentage of annual returns has outperformed that of Bristol, Edinburgh, Glasgow, Leeds and Manchester, as well as London’s City and West End markets.
Birmingham has outperformed London’s City office market by 42%, Manchester’s by 22% and Bristol’s by 16%, while the Glasgow office market has performed worst, with the lowest rate of rental growth and no movement in capital values.
Jonathan Hillcox, joint head of JLL’s Birmingham office, said: “The development constraints imposed by the inner ring road and consistently low level of speculative development have combined in maintaining a tight market in the city – effectively locking in value.”
Stewart Ross, regional manager at JLL, said that the report allows investors to accurately compare like-for-like performance in the UK’s core office markets for the first time. “These markets display different characteristics to those of London’s City and West End, largely due to the delayed rental cycle, where performance is more aligned to rental return than capital growth and market swings are less volatile.”
EGi News 05/12/00
