Birmingham office market shows resilience as take-up continues to rise
The Birmingham office market continues to prove its resilience as it rebounds in 2022, with the first quarter seeing take-up increase by 9% from the last quarter of 2021, totaling 260,444 square feet.
According to Avison Young’s latest Big Nine office market report, the continued demand for high-quality inventory also shines through, with three-quarters (75%) of first quarter transactions in the city center being for category HAS.
The same upward trajectory is seen in the periphery market, which is growing by 14%. The City and Away results for the first quarter of 2022 represent some of the strongest results achieved in Birmingham since before the pandemic.
Boosted by continued investment in the heart of the city, Victoria Square House and Chamberlain Square are experiencing high volumes of activity. Notable first quarter deals include the launch of established coworking provider Cubo Work in Birmingham with 24,300 square feet of space in Two Chamberlain Square as the government continues to build its presence in the city. The Office of the Public Guardian recently signed a deal for 27,000 square feet of space in the city’s Victoria Square house, and last year the Department for Work and Pensions acquired the rest of the space in the building B1 in the jewelry district where it now occupies 65,000 square feet
Carl Potter, Principal and Managing Director of the Birmingham office at Avison Young, said: “Birmingham continues to prove its resilience, with growing confidence in the market showing in the first quarter of this year. Beyond the volume and surge in activity, the demand for Grade A space continues, and we are delighted to see Birmingham responding to this with a healthy supply of quality options to come now and later. This year.
“New and existing investors are claiming their place in the city, and if this upward trajectory continues as expected, 2022 will be a very positive year for Birmingham.”
The performance of Birmingham’s outdoor market is also strong, totaling 85,183 square feet in the first quarter of this year, up 14% from the last quarter of 2021. A major government deal at Birmingham Business Park has contributed strongly to this good performance, marking the park’s biggest contract in over two decades.
Charles Toogood, Principal and Managing Director of Avison Young’s National Offices Team, said: “It is encouraging to see Birmingham continue to respond to a changing office market and continue to perform exceptionally well, with a Grade A quality space at the forefront of this activity – both out of town and in the city centre.
“Birmingham is exceeding expectations, completing some of the largest transactions across the country and seeing occupiers from both the public and private sectors affirm their commitment to the city.
The government’s continued confidence is also clear, with the deal at Birmingham Business Park being a real highlight of the first quarter, which is having a positive ripple effect across the market. As for the rest of this year, the city is on track for a strong performance.