Bumper Q4 for Birmingham’s 2023 office market- report
Birmingham office market’s Q4 2023 was the best of the year, with take up totalling 240,274 sq ft in 37 deals, according to KWB research.
Law firm Mills & Reeve topped the bumper quarter by taking 32,088 sq ft at One Centenary Way in Paradise Birmingham.
The second and third largest transactions saw Global Banking School (GBS) take 29,383 sq ft at Norfolk House and Crown Prosecution Service (CPS) take 27,589 sq ft at 9 Colmore Row.
In its Birmingham 2023 Q4 and annual report, KWB says total take up in 2023 was 702,993 sq ft across 109 deals.
It beat the five year annual average of 670,677 sq ft and it’s the first time Birmingham has passed the 700,000 sq ft mark since 2019, when take up reached 780,095 sq ft. Average take up for the last ten years was 749,111sq ft.
Deals in the 20,000-50,000 sq ft bracket accounted for almost 40 per cent of total 2023 take-up and transactions in education and government sectors accounted for over 50 per cent.
The largest deal of 2023 saw Lloyds Bank take 59,896 sq ft of managed office space at 6 Brindleyplace. The transaction – which also represented the biggest flexible office letting outside London in 2023 – saw the bank relocate 2,260 staff to enable the refurbishment of its headquarters at 125 Colmore Row. The second largest deal saw QA Higher Education take 45,180 sq ft at Louisa Ryland House on Newhall Street.
Malcolm Jones, director at KWB said: “Birmingham’s office market demonstrated continued resilience in 2023, with annual take-up climbing 10,293 sq ft from 2022.
“Q4’s largest transaction at Mills & Reeve’s largest transaction at One Centenary Way highlights the ‘flight to quality’ trend as organisations look to enhance their presence in thriving city-centre locations.
“There are a number of new buildings and developments on the horizon across the city that will answer growing demand from occupiers for this high quality, flexible space. Three Chamberlain Square will add a further 189,000 sq ft to the Paradise estate and is due for completion in 2025. Plans have been submitted to Birmingham city council for the partial demolition, refurbishment and extension of prominent office block Colmore Gate. Construction is also underway on the 30 storey Beorma Tower, providing new-build office space, available from 7,000 – 153,000 sq ft, across 12 floors.
“The in-demand Birmingham city centre office market also presents the ideal opportunity for landlords to refurbish existing properties.”
For more details on KWB’s office market research or landlord or occupier advice, contact Malcolm Jones: firstname.lastname@example.org / 0121 233 2330.
Pictured: One Centenary Way