Birmingham office market set to outperform ten-year average
The Birmingham office market is on course to beat the ten-year average take-up figure, according to leading property consultancy CBRE.
CBRE’s Q3 Update confirms figures released by Birmingham Office Market Forum (BOMF) which showed that take-up in quarter three 2016 in the central Birmingham office market totalled 95,546 sq ft.
When added to the deals to the end of June, the year to date totals 595,338 sq ft against a ten-year average annual take-up figure of 663,000 sq ft, despite the quarter three take-up being relatively low.
CBRE remains confidant that the average annual take-up figure will be beaten and that 2016 – taken as a whole – will be seen as another solid year for the Birmingham office market.
Ashley Hancox, the firm’s Birmingham-based executive director of office agency, said:
“As far as the Birmingham office market is concerned the direction of travel has not changed and the Q3 take-up figures will be seen as a bump on the road.
“Given the uncertainty following the Referendum it is not surprising that occupiers of all types paused to take a breath and that had an impact on the office market of Birmingham and other cities.
“But it is important to look at the bigger picture and it seems clear that the average annual take-up figure will be topped once the Q4 figures are in.
“Underlying demand for office space in Birmingham city centre is still strong, as was demonstrated by the fact that the transaction volumes in Q3 were consistent with previous quarters.”
Mr Hancox suggests there are a number of large requirements circling the Birmingham office market at the moment and it is possible at least one of these could land in Q4.
“The underlying positive and confident fundamentals of the Birmingham office market haven’t changed. The core reasons occupiers want to be based here didn’t suddenly disappear in Q3,” he said.
“I’m expecting a marked improvement in the take-up figures as we move forward and 2016 as a whole will still be judged a positive year for the city’s office market.
”CBRE’s research shows that a large tranche of take-up in the central Birmingham office market in the first nine months of this year can be attributed to professional services (34 per cent), with business,and consumer services, and leisure following behind with a 25 per cent share of the market each.